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Digi International

Nasdaq:DGII
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DGII
Nasdaq
$420M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

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 last earnings update was 93 days ago. More info.


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DGII Share Price and Events
7 Day Returns
2%
NasdaqGS:DGII
4.7%
US Communications
0.9%
US Market
1 Year Returns
28.8%
NasdaqGS:DGII
1.1%
US Communications
10.5%
US Market
DGII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Digi International (DGII) 2% 9.7% 9.5% 28.8% 28.2% 99.2%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • DGII outperformed the Communications industry which returned 1.1% over the past year.
  • DGII outperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
DGII
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Digi International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Digi International.

NasdaqGS:DGII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:DGII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (0%))
1.088
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.088 * 5.96%)
9.21%

Discounted Cash Flow Calculation for NasdaqGS:DGII using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Digi International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:DGII DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.21%)
2020 25.80 Analyst x2 23.62
2021 29.80 Analyst x1 24.98
2022 32.29 Est @ 8.35% 24.79
2023 34.44 Est @ 6.67% 24.21
2024 36.33 Est @ 5.49% 23.38
2025 38.02 Est @ 4.66% 22.41
2026 39.57 Est @ 4.08% 21.35
2027 41.03 Est @ 3.68% 20.27
2028 42.42 Est @ 3.39% 19.19
2029 43.78 Est @ 3.19% 18.13
Present value of next 10 years cash flows $222.00
NasdaqGS:DGII DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $43.78 × (1 + 2.73%) ÷ (9.21% – 2.73%)
$693.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $693.58 ÷ (1 + 9.21%)10
$287.29
NasdaqGS:DGII Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $222.00 + $287.29
$509.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $509.29 / 28.14
$18.1
NasdaqGS:DGII Discount to Share Price
Calculation Result
Value per share (USD) From above. $18.10
Current discount Discount to share price of $14.94
= -1 x ($14.94 - $18.10) / $18.10
17.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Digi International is available for.
Intrinsic value
17%
Share price is $14.94 vs Future cash flow value of $18.1
Current Discount Checks
For Digi International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Digi International's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Digi International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Digi International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Digi International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:DGII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.39
NasdaqGS:DGII Share Price ** NasdaqGS (2019-11-08) in USD $14.94
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Digi International.

NasdaqGS:DGII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:DGII Share Price ÷ EPS (both in USD)

= 14.94 ÷ 0.39

38.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Digi International's expected growth come at a high price?
Raw Data
NasdaqGS:DGII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
43.9%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NasdaqGS:DGII PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.73x ÷ 43.9%

0.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digi International is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Digi International's assets?
Raw Data
NasdaqGS:DGII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $12.27
NasdaqGS:DGII Share Price * NasdaqGS (2019-11-08) in USD $14.94
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:DGII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:DGII Share Price ÷ Book Value per Share (both in USD)

= 14.94 ÷ 12.27

1.22x

* Primary Listing of Digi International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digi International is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Digi International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Digi International has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
43.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Digi International expected to grow at an attractive rate?
  • Digi International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Digi International's earnings growth is expected to exceed the United States of America market average.
  • Digi International's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:DGII Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:DGII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 43.9%
NasdaqGS:DGII Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 11.5%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:DGII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:DGII Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 337 28 25 1
2020-09-30 277 31 15 7
2019-11-10
2019-09-30 251 26 9 7
NasdaqGS:DGII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 256 29 11
2019-03-31 257 8 12
2018-12-31 246 5 10
2018-09-30 228 -3 1
2018-06-30 207 -6 3
2018-03-31 190 -2 1
2017-12-31 181 3 3
2017-09-30 182 2 9
2017-06-30 187 6 9
2017-03-31 193 15 12
2016-12-31 198 21 13
2016-09-30 203 27 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Digi International's earnings are expected to grow significantly at over 20% yearly.
  • Digi International's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:DGII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Digi International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DGII Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30
2020-09-30 0.47 0.51 0.45 7.00
2019-11-10
2019-09-30 0.33 0.35 0.32 7.00
NasdaqGS:DGII Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.39
2019-03-31 0.43
2018-12-31 0.38
2018-09-30 0.05
2018-06-30 0.10
2018-03-31 0.04
2017-12-31 0.09
2017-09-30 0.35
2017-06-30 0.34
2017-03-31 0.45
2016-12-31 0.49
2016-09-30 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Digi International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Digi International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Digi International has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Digi International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Digi International's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (305.6% vs 5.2%)
  • Digi International's earnings growth has exceeded the US Communications industry average in the past year (305.6% vs 21.7%).
Earnings and Revenue History
Digi International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Digi International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:DGII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 255.83 10.68 69.36 36.28
2019-03-31 256.94 11.94 69.70 35.90
2018-12-31 245.72 10.47 66.75 34.95
2018-09-30 228.37 1.30 69.04 33.18
2018-06-30 206.88 2.63 61.32 31.84
2018-03-31 190.35 1.07 55.75 31.05
2017-12-31 181.41 2.52 54.41 29.41
2017-09-30 181.63 9.37 49.69 28.57
2017-06-30 186.98 8.87 51.49 28.72
2017-03-31 193.37 11.81 51.85 29.24
2016-12-31 197.92 12.70 50.62 30.02
2016-09-30 203.01 13.48 51.31 30.96
2016-06-30 206.72 13.30 51.72 31.34
2016-03-31 206.65 12.11 52.43 31.18
2015-12-31 206.89 11.55 53.45 30.70
2015-09-30 203.85 9.43 55.88 29.95
2015-06-30 201.29 6.19 57.04 30.02
2015-03-31 197.12 3.01 58.66 29.48
2014-12-31 192.60 2.08 59.56 29.62
2014-09-30 183.17 4.49 57.00 28.91
2014-06-30 192.46 3.37 59.27 29.45
2014-03-31 193.40 5.00 59.32 29.80
2013-12-31 195.71 5.26 59.40 30.17
2013-09-30 195.38 5.81 59.88 30.33
2013-06-30 191.26 6.22 58.48 29.80
2013-03-31 190.07 7.00 57.44 29.97
2012-12-31 190.89 8.12 57.17 29.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Digi International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Digi International used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • Digi International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Digi International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Digi International has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Digi International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Digi International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Digi International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Digi International has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Digi International Company Filings, last reported 4 months ago.

NasdaqGS:DGII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 345.08 0.00 86.35
2019-03-31 340.84 0.00 72.09
2018-12-31 335.01 0.00 76.47
2018-09-30 330.28 0.00 62.75
2018-06-30 323.42 0.00 52.46
2018-03-31 322.03 0.00 57.15
2017-12-31 318.62 0.00 73.81
2017-09-30 319.14 0.00 110.24
2017-06-30 311.59 0.00 109.28
2017-03-31 306.40 0.00 107.98
2016-12-31 302.11 0.00 133.08
2016-09-30 300.03 0.00 134.11
2016-06-30 294.94 0.00 124.21
2016-03-31 290.41 0.00 115.38
2015-12-31 285.52 0.00 102.39
2015-09-30 274.94 0.00 92.21
2015-06-30 270.64 0.00 91.28
2015-03-31 265.13 0.00 84.88
2014-12-31 261.38 0.00 77.67
2014-09-30 265.30 0.00 80.39
2014-06-30 273.35 0.00 88.25
2014-03-31 275.70 0.00 88.59
2013-12-31 278.93 0.00 97.81
2013-09-30 274.24 0.00 88.33
2013-06-30 272.26 0.00 90.70
2013-03-31 272.46 0.00 79.76
2012-12-31 275.67 0.00 101.52
  • 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.
X
Financial health checks
We assess Digi International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Digi International has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Digi International dividends.
If you bought $2,000 of Digi International shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:DGII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:DGII Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30
2019-11-10
2019-09-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Digi International's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Digi International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Digi International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Digi International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Konezny
COMPENSATION $1,751,005
AGE 51
TENURE AS CEO 4.9 years
CEO Bio

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. since July 2018. Mr. Konezny served as a General Manager of Worldwide Transportation and Logistics (T&L) Division at Trimble Navigation Limited and PeopleNet Communications Corporation from August 2011 to September, 2013. He possesses extensive business, operating and executive expertise. He served as the Chief Executive Officer at PeopleNet Communications Corporation from July 23, 2007 to September 2013. He founded PeopleNet Communications Corporation in 1994 and served as Vice President of Global Transportation and Logistics, Global Transportation and Logistics at Trimble Navigation Limited From September 2013 to December 2014. He served as the Chief Operating Officer and Chief Financial Officer at of PeopleNet Communications Corp. from 2001 to 2007 and its Chief Technology Officer from 1996 to 2007. He joined PeopleNet in 1995 and was instrumental in launching its flagship product, the g2x™ wireless fleet system. He led PeopleNet's technology and platform vision and led the development of its exclusive OTAP (over-the-air-programming) capabilities, Palm® OS integration, PerformX, Fleet Manager System and more. At PeopleNet, he oversees the technology behind the innovative Intouch Fleet Management System. He served as a Senior Consultant of Gemini Consulting, Inc. (Cap Gemini Ernst & Young Consulting), where he specialized in international telecommunications. He served in technology and communications as well as new product development and strategic planning. He has been Director of Digi International Inc. since December 17, 2014. He served as a Director of ID Systems Inc. since June 20, 2014. He served on the Boards of Directors of the National Private Truck Council Institute and the Truckload Carriers Association. Mr. Konezny graduated with honors from Northwestern University with a BA degree in Economics and was a Phi Eta Sigma nominee.

CEO Compensation
  • Ron's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ron's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Digi International management team in years:

2.1
Average Tenure
53.5
Average Age
  • The tenure for the Digi International management team is about average.
Management Team

Ron Konezny

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
4.9 yrs

Dave Sampsell

TITLE
VP of Corporate Development
COMPENSATION
$608K
AGE
51
TENURE
8.6 yrs

Kevin Riley

TITLE
President of IoT Solutions
COMPENSATION
$748K
AGE
58
TENURE
1 yrs

Jon Nyland

TITLE
Vice President of Manufacturing Operations
COMPENSATION
$476K
AGE
56
TENURE
20.6 yrs

Jamie Loch

TITLE
Senior VP
TENURE
0.5 yrs

Brian Ballenger

TITLE
Vice President of Finance & Accounting
TENURE
0.8 yrs

Scott Wilken

TITLE
Vice President of Technology
TENURE
2.1 yrs

Tracy Roberts

TITLE
CIO & VP of Technology Services
AGE
57
TENURE
6.3 yrs

Mike Ueland

TITLE
President of IoT Products & Services
AGE
51
TENURE
1 yrs
Board of Directors Tenure

Average tenure and age of the Digi International board of directors in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the Digi International board of directors is less than 3 years, this suggests a new board.
Board of Directors

Satbir Khanuja

TITLE
Chairman of the Board
COMPENSATION
$171K
AGE
52
TENURE
1.8 yrs

Ron Konezny

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
4.9 yrs

Sam Lazarakis

TITLE
Independent Director
COMPENSATION
$152K
AGE
64
TENURE
4.3 yrs

Sally Smith

TITLE
Independent Director
COMPENSATION
$166K
AGE
61

Chris Heim

TITLE
Director
COMPENSATION
$166K
AGE
54
TENURE
1.8 yrs

Hatem Naguib

TITLE
Director
AGE
50
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Digi International individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Aug 19 Sell Terrence Schneider Individual 15. Aug 19 15. Aug 19 -2,636 $13.61 $-35,875
07. Jun 19 Sell Tracy Roberts Individual 06. Jun 19 06. Jun 19 -7,180 $11.46 $-82,273
21. Feb 19 Sell Jon Nyland Individual 20. Feb 19 20. Feb 19 -26,314 $13.44 $-353,597
X
Management checks
We assess Digi International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Digi International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Selling Digi International Inc. (NASDAQ:DGII) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Digi International Inc. … View our latest analysis for Digi International The Last 12 Months Of Insider Transactions At Digi International The Vice President of Manufacturing Operations, Jon Nyland, made the biggest insider sale in the last 12 months. … NasdaqGS:DGII Recent Insider Trading, September 3rd 2019 Insiders at Digi International Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Digi International.

Simply Wall St -

Why Digi International Inc.'s (NASDAQ:DGII) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Digi International: P/E of 34.92 = $13.47 ÷ $0.39 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … Does Digi International Have A Relatively High Or Low P/E For Its Industry? … So based on this analysis we'd expect Digi International to have a high P/E ratio.

Simply Wall St -

How Does Investing In Digi International Inc. (NASDAQ:DGII) Impact The Volatility Of Your Portfolio?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Check out our latest analysis for Digi International What does DGII's beta value mean to investors? … What this means for you: Since Digi International tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Why Digi International Inc.'s (NASDAQ:DGII) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Digi International How Does Ron Konezny's Compensation Compare With Similar Sized Companies? … The median total CEO compensation was US$1.8m.

Simply Wall St -

At US$13.01, Is It Time To Put Digi International Inc. (NASDAQ:DGII) On Your Watch List?

I find that Digi International’s ratio of 29.93x is trading slightly above its industry peers’ ratio of 29.41x, which means if you buy Digi International today, you’d be paying a relatively fair price for it. … And if you believe Digi International should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. … This is because Digi International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Introducing Digi International (NASDAQ:DGII), A Stock That Climbed 46% In The Last Five Years

Over half a decade, Digi International managed to grow its earnings per share at 17% a year. … NasdaqGS:DGII Past and Future Earnings, July 8th 2019 We know that Digi International has improved its bottom line lately, but is it going to grow revenue? … A Different Perspective While the broader market gained around 7.2% in the last year, Digi International shareholders lost 8.9%.

Simply Wall St -

Digi International Inc.’s (NASDAQ:DGII) Investment Returns Are Lagging Its Industry

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Digi International: 0.043 = US$15m ÷ (US$384m - US$41m) (Based on the trailing twelve months to March 2019.) So, Digi International has an ROCE of 4.3%. … See our latest analysis for Digi International Is Digi International's ROCE Good? … The Bottom Line On Digi International's ROCE While that is good to see, Digi International has a low ROCE and does not look attractive in this analysis.

Simply Wall St -

Digi International Inc. (NASDAQ:DGII) Might Not Be A Great Investment

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Digi International: 0.043 = US$15m ÷ (US$384m - US$41m) (Based on the trailing twelve months to March 2019.) So, Digi International has an ROCE of 4.3%. … Digi International's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … What We Can Learn From Digi International's ROCE While that is good to see, Digi International has a low ROCE and does not look attractive in this analysis.

Simply Wall St -

Should Digi International Inc. (NASDAQ:DGII) Focus On Improving This Fundamental Metric?

View our latest analysis for Digi International How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Digi International: 3.5% = US$12m ÷ US$341m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Digi International's Debt And Its 3.5% Return On Equity Shareholders will be pleased to learn that Digi International has not one iota of net debt!

Simply Wall St -

What Kind Of Investor Owns Most Of Digi International Inc. (NASDAQ:DGII)?

Digi International is a smaller company with a market capitalization of US$330m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Digi International NasdaqGS:DGII Ownership Summary, May 27th 2019 What Does The Institutional Ownership Tell Us About Digi International? … Insider Ownership Of Digi International The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Company Info

Description

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 segments, IoT Products & Services and IoT Solutions. It offers cellular routers that provide connectivity for devices over a cellular data network; cellular gateway products that enable devices or groups of devices to be networked in locations where there is no existing network or where access to a network is prohibited; radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity; and Connect, Rabbit, and ARM-based embedded systems on module and single board computers for medical, transportation, and industrial device manufacturers. The company also provides console and serial servers, as well as universal serial bus (USB)-to-serial converters, USB over Internet protocol products, and multiport USB hubs. In addition, it offers cellular remote management products that provide cellular router technology and device management solutions; Digi Remote Manager, a centralized remote device management solution to meet service level commitments and stay compliant with payment card industry data security standards, as well as to monitor, diagnose, and fix remote devices; turn-key wireless networking product development, testing, and certification for wireless technology platforms and applications; and implementation planning, application development, on-site support, installation, and customer training services. Further, the company provides SmartSense by Digi, a system that enables customers in food service, transportation/logistics, and healthcare to monitor the temperature of food and other perishable goods; and to track the completion of operating tasks by employees, as well as to have visibility in the supply chain to product temperature. The company was founded in 1985 and is headquartered in Minnetonka, Minnesota.

Details
Name: Digi International Inc.
DGII
Exchange: NasdaqGS
Founded: 1985
$420,360,027
28,136,548
Website: http://www.digi.com
Address: Digi International Inc.
11001 Bren Road East,
Minnetonka,
Minnesota, 55343,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS DGII Common Stock Nasdaq Global Select US USD 05. Oct 1989
DB DGI Common Stock Deutsche Boerse AG DE EUR 05. Oct 1989
Number of employees
Current staff
Staff numbers
516
Digi International employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:34
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/08
Last earnings filing: 2019/08/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.