DGII

Digi International Inc.

$73.22

+4.75% 2026-10-19

Information TechnologyS&P 600

1M 3M 6M 1Y 2Y

DGIISPY

-2.5%

+1.5%

+14.2%

+32.0%

YTD

+69.1%

+93.1%

Grades vs sector

Momentum

84th pct in sector

A-

12-1 return: +107.8%
Percentile within its GICS sector across the S&P 1500.

Growth

74th pct in sector

B+

Revenue growth (YoY): +29.0%
Percentile within its GICS sector across the S&P 1500.

Value

40th pct in sector

C-

Forward E/P: 4.5% · EBITDA/EV: 4.2%
Percentile within its GICS sector across the S&P 1500.

Profitability

37th pct in sector

C-

Profit margin: +9.6% · Return on equity: +7.5%
Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Held by 1 of 3 live models: Momentum Blend.

Momentum Blend

3.5% of the book · Core sleeve

Held Momentum Top 15

not ranked (outside this model's universe or screens)

Quality Growth

not ranked (outside this model's universe or screens)

Why it's in Momentum Blend

In the Core sleeve: one of the steadiest 12-month uptrends in its universe (the model's smooth-trend momentum score).

What would knock it out: Re-checked at each monthly rebalance (next Oct 30); leaves if it no longer makes the Core selection. The latest preview drops it.

Key stats

Market cap$2.8B

P/E (trailing)58.1

P/E (forward)23.4

52-week range34.41 – 86.84

Revenue growth (YoY, latest qtr)+29.0%

Dividend yield0.00%

Analyst consensusNone (5)

Mean price target$85.40 (+17%)

Valuation & fundamentals

Bottom line

Leans undervalued

Model read-out from the numbers below, not advice. Score +2 (DCF counts double).

▲DCF (base case)above the price by 64%

▼Forward P/E vs sector23.4x vs median 16.9x

•Piotroski F-score5/9

▲Altman Z7.2 (safe)

▲Net debt / EBITDA0.8x

▲Analyst target+17% (5 analysts)

Discounted cash flow

Bear

$68

-7%

growth 10% · disc. 10.1% · term. 2.0%

Base

$120

+64%

growth 16% · disc. 9.1% · term. 2.5%

Bull

$195

+167%

growth 20% · disc. 8.1% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 6% a year for 10 years.

Implied

+6%/yr

FCF, last 3 yrs

+42%/yr

FCF, last 5 yrs

+26%/yr

Revenue, last 3 yrs

+3%/yr

Revenue, last 5 yrs

+9%/yr

Same inputs as the DCF above: trailing free cash flow 0.1B, 9.1% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.96 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)

sector median 35.9× · 76th pct

58.1×
pricier

Forward P/E

sector median 16.9× · 70th pct

23.4×
pricier

EV / EBITDA

sector median 20.8× · 63rd pct

27.3×
pricier

Price / sales

sector median 4.6× · 59th pct

5.5×
pricier

Price / book

sector median 5.1× · 40th pct

4.1×
cheaper

FCF yield

sector median 3.5% · 67th pct

5.0%
cheaper

Forward EPS $3.13 vs trailing $1.26 (+149% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$240.1M

as of 2026-06-30

vs a year ago

+51%

YoY

× TTM revenue

0.47×

coverage

24-09

24-12

25-03

25-06

25-09

25-12

26-03

26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

63.8%

Operating margin

13.9%

FCF margin

27.3%

Net margin

9.6%

Return on equity

7.1%

Return on invested capital

7.2%

Net debt / EBITDA

0.8×

Current ratio

1.1×

Interest cover

–

Cash conversion (OCF/NI)

2.8×

Piotroski F-score 5/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✗ Current ratio improved✗ No share dilution✓ Gross margin improved✗ Asset turnover improved

Altman Z-score 7.2 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$85

+17%

Analysts

None

Range

$76–$90

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$430.2M	$40.8M	$108.0M
2024	$424.0M	$22.5M	$83.1M
2023	$444.8M	$24.8M	$36.8M
2022	$388.2M	$19.4M	$37.7M
2021	$308.6M	$10.4M	$57.7M
2020	$279.3M	$8.4M	$34.5M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +3.5%.

Earnings

Next report: 2026-11-16 · during market · EPS est 0.76

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-05	0.66	0.75	+13.0%
2026-05-06	0.58	0.62	+7.2%
2026-02-04	0.55	0.56	+2.1%
2025-11-12	0.51	0.56	+10.2%
2025-08-06	0.50	0.53	+5.7%
2025-05-07	0.48	0.51	+5.5%
2025-02-05	0.50	0.50	+0.8%
2024-11-13	0.50	0.52	+4.5%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$138.7M	+29.0%
2026-03-31	$130.7M	–
2025-12-31	$122.5M	–
2025-09-30	$114.3M	–
2025-06-30	$107.5M	–

Analyst actions

Piper Sandler

2026-08-06 · main

Neutral → Neutral
PT $76

Stephens & Co.

2026-08-06 · main

Overweight → Overweight
PT $85

B. Riley Securities

2026-08-06 · main

Buy → Buy
PT $86

Stephens & Co.

2026-05-12 · main

Overweight → Overweight
PT $75

Piper Sandler

2026-05-07 · main

Neutral → Neutral
PT $63

Stephens & Co.

2026-05-07 · main

Overweight → Overweight
PT $65

News

Digi International to Release Fourth Fiscal Quarter and Full Fiscal 2026 Earnings Results via Video Conference Call on November 11, 2026

Business Wire · 7h ago

Is Digi International (DGII) Reasonable Or Looking Stretched On Cash Flow?

Simply Wall St. · Oct 09

How Digi’s AI-Enabled 5G EX60 Launch At Digi International (DGII) Has Changed Its Investment Story

Simply Wall St. · Oct 08

Digi International Announces Digi EX60 for Always-On 5G Branch Connectivity

Business Wire · Oct 06

Digi International Acquires Disruptive Technologies to Expand SmartSense IoT Reach

MarketBeat · Oct 03

Digi International to Acquire Disruptive Technologies for $130 Million

MT Newswires · Oct 01

Digi International Announces Intent to Acquire Disruptive Technologies to Advance SmartSense Physical-World Intelligence Platform and Enter Europe

Business Wire · Oct 01

Digi International's Opengear Unit Signs Distribution Deal With Ingram Micro

MT Newswires · Sep 29

Stats refreshed 2026-10-19 17:47:11 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

coteau

Hypothetical research for education, not investment advice. Data: Yahoo Finance (via yfinance, delayed), SEC EDGAR.

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