Digi International Inc.
Rank #242ValueDGII · Nasdaq · Technology
Digi International Inc. (DGII) — Rank #242 by gross profitability (GP/assets 0.28) · ROE 6.0% · Piotroski F-Score 5 / 9.
As-of 2026-09-15 · CIK 0000854775 · all metrics point-in-time as of the filing date.
About
Digi International Inc. provides business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally.
Show moreShow less
It operates through IoT Products & Services, and IoT Solutions segments. The company offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand. It also provides embedded system products under the Digi Connect, and ConnectCore brands; and infrastructure management products comprising serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it provides Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that offers a secure environment for customers to manage connected device deployment and network devices; SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitoring facilities or pharmacies by tracking the completion of operating tasks by employees, and quality control and incident management in food service, healthcare, and transportation/logistics industries; and Ventus for MNaaS solutions. Further, the company provides professional services, such as site planning, implementation management, application development, and customer training; data plan subscriptions; and enhanced technical support services, as well as Digi Wireless Design Services. Digi International Inc.
was incorporated in 1985 and is headquartered in Hopkins, Minnesota.
- Industry
- Communication Equipment
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- September 30
- Website
- digi.com
Price History
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
$2.53B
P/E (annual)
61.8
P/S (annual)
5.9
P/B
3.7
P/OCF (annual)
23.5
Shareholder Yield
-2.0%
Employees
913
Industry
Communication Equipment
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholdsWhat Growth Is Priced In
Implied revenue growth (10Y)
10.1%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 2.0% — per-share value needs a total required return of 12.2% once share-count change is priced in.
vs. own 6-year median revenue growth: 10.2%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
5.7%
r = 10% (base)
10.1%
r = 12%
14.0%
Net debt / market cap: 3.2%
Note: current FCF margin is 1.7σ above its historical mean — implied growth may understate valuation risk if the margin reverts.
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Gross profitability (GP / assets)
0.28
Primary signal (Novy-Marx).
5th of 5 SIC 3576 peers
Return on equity
6.0%
Gross margin
62.9%
4th of 5 SIC 3576 peers
Revenue growth (YoY)
1.5%
RPO growth (YoY)
34.8%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
3.5%
Revenue CAGR (5Y)
9.0%
Earnings CAGR (3Y)
28.2%
FCF CAGR (3Y)
43.3%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.41
2nd of 5 SIC 3576 peers (best = lowest)
Current ratio
1.13×
5th of 5 SIC 3576 peers
Quick ratio
0.71×
Net cash
-$80.16M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$105.33M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
1.58
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
3.6%
Stock-based comp intensity.
Piotroski F-Score
F-Score
5 / 9
Fundamental-strength score (0-9).