NasdaqGS:DGII

Stock Analysis Report

Executive Summary

Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, Asia, and Latin America.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Digi International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

NasdaqGS:DGII

2.9%

US Communications

1.1%

US Market


1 Year Return

-5.0%

NasdaqGS:DGII

22.3%

US Communications

4.7%

US Market

DGII underperformed the Communications industry which returned 23.4% over the past year.

DGII underperformed the Market in United States of America which returned 4.8% over the past year.


Share holder returns

DGIIIndustryMarket
7 Day1.7%2.9%1.1%
30 Day8.5%6.2%4.3%
90 Day0.4%-1.6%2.9%
1 Year-5.0%-5.0%25.0%22.3%7.0%4.7%
3 Year17.8%17.8%89.2%77.0%47.4%37.7%
5 Year49.0%49.0%112.0%89.7%61.6%43.6%

Price Volatility Vs. Market

How volatile is Digi International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Digi International undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Digi International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Digi International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Digi International is overvalued based on earnings compared to the US Communications industry average.

Digi International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Digi International is good value based on expected growth next year.


Price Based on Value of Assets

Digi International is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is Digi International expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Digi International's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Digi International's earnings are expected to grow significantly at over 20% yearly.

Digi International's revenue growth is positive but not above the United States of America market average.

Digi International's earnings growth is expected to exceed the United States of America market average.

Digi International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Digi International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Digi International performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Digi International's year on year earnings growth rate has been positive over the past 5 years.

Digi International's 1-year earnings growth exceeds its 5-year average (1021.1% vs 4.9%)

Digi International's earnings growth has exceeded the US Communications industry average in the past year (1021.1% vs 14.9%).


Return on Equity

Digi International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Digi International used its assets less efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

Digi International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Digi International's financial position?


Financial Position Analysis

Digi International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Digi International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Digi International has no debt.

Digi International has not taken on any debt in the past 5 years.

Digi International has no debt, it does not need to be covered by operating cash flow.

Digi International has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Digi International has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Digi International's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Digi International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Digi International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Digi International has not reported any payouts.

Unable to verify if Digi International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Digi International has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Digi International's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ron Konezny (51yo)

4.6yrs

Tenure

US$1,751,005

Compensation

Mr. Ronald E. Konezny, also known as Ron, has been the Chief Executive Officer and President at Digi International Inc. since December 17, 2014. He serves as the Director of Atlas Financial Holdings Inc. s ...


CEO Compensation Analysis

Ron's remuneration is about average for companies of similar size in United States of America.

Ron's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Digi International management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

The average tenure for the Digi International board of directors is less than 3 years, this suggests a new board.


Insider Trading

Digi International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$82,27307 Jun 19
Tracy Roberts
EntityIndividual
Role
CIO & VP of Technology Services
Shares7,180
Max PriceUS$11.46
SellUS$353,59721 Feb 19
Jon Nyland
EntityIndividual
Role
Vice President of Manufacturing Operations
Shares26,314
Max PriceUS$13.44

Ownership Breakdown


Management Team

  • Scott Wilken

    Vice President of Technology

    • Tenure: 1.8yrs
  • Jon Nyland (56yo)

    Vice President of Manufacturing Operations

    • Tenure: 20.3yrs
    • Compensation: $476.46k
  • Dave Sampsell (51yo)

    VP of Corporate Development

    • Tenure: 8.3yrs
    • Compensation: $608.26k
  • Tracy Roberts (57yo)

    CIO & VP of Technology Services

    • Tenure: 6.0yrs
  • Kevin Riley (58yo)

    President of IoT Solutions

    • Tenure: 0.7yrs
    • Compensation: $747.74k
  • Brian Ballenger

    Vice President of Finance & Accounting

    • Tenure: 0.4yrs
  • Ron Konezny (51yo)

    President

    • Tenure: 4.6yrs
    • Compensation: $1.75m
  • Mike Ueland (51yo)

    President of IoT Products & Services

    • Tenure: 0.7yrs
  • Jamie Loch

    Senior VP

    • Tenure: 0.2yrs

Board Members

  • Chris Heim (54yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: $166.27k
  • Ron Konezny (51yo)

    President

    • Tenure: 4.6yrs
    • Compensation: $1.75m
  • Sally Smith (61yo)

    Independent Director

    • Compensation: $166.27k
  • Satbir Khanuja (52yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: $170.92k
  • Sam Lazarakis (64yo)

    Independent Director

    • Tenure: 4.0yrs
    • Compensation: $151.59k
  • Hatem Naguib (50yo)

    Director

    • Tenure: 0.4yrs

Company Information

Digi International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Digi International Inc.
  • Ticker: DGII
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: communications equipment
  • Sector: tech
  • Market Cap: US$360.000m
  • Shares outstanding: 28.06m
  • Website: Click here

Number of Employees


Location

  • Digi International Inc.
  • 11001 Bren Road East
  • Minnetonka
  • Minnesota
  • 55343
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGIINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1989
DGIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1989

Biography

Digi International Inc. provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, Asia, and Latin America. The company operates in two se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 23:35
End of Day Share Price2019/07/15 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.