Digi International (DGII) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Digi International

NasdaqGS•Technology•Communication Equipment

$72.13-0.53(-0.01%)Market closed

Market Cap

$2.72B

P/E

55.8x

P/S

5.4x

P/B

4.0x

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. 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.

How this company scores

GoodMetricSide Score: 75/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (13/25).

Profitability16/25

Growth21/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality25/25

Strengths

Growing revenueRising free cash flowLow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 55.8x5y range 24.4x – 72.8x

Currently near its 20-quarter median.

P/S · 5.4x5y range 1.5x – 5.4x

Currently above its 20-quarter median.

P/B · 4.0x5y range 1.5x – 4.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Leverage Risk

Watch

Debt-to-equity has risen 144.7% recently — increasing financial risk even if the current ratio is manageable.

Share Dilution

Watch

Shares outstanding rose 3.6% — mild dilution. Compare to earnings growth to assess the net per-share impact.

Price & Volume

Market Cap $2.72B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $506.21M
Q. Revenue: $138.67M
TTM EBITDA: $105.58M
TTM Op. Income: $70.58M
Q. Op. Income: $22.89M
TTM Net Income: $48.73M
Q. Net Income: $15.74M
EPS: $0.42
Shares Out.: $37.78M

$506.21M in TTM revenue grew 20.3% YoY, reaching $138.67M last quarter. TTM EBITDA of $105.58M and TTM operating income of $70.58M show growth is flowing through to the bottom line. TTM net income of $48.73M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 64.8%
EBITDA Margin: 18.9%
Op. Margin: 16.5%
Net Margin: 11.4%

Op. margin of 16.5% is up 2.6% YoY — cost efficiency is improving. Net margin at 11.4% and gross margin of 64.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 19% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 55.8x
P/S Ratio: 5.4x
P/B Ratio: 4.0x

At 55.8x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 5.4x and P/B of 4.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 5 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $964.35M
Cash: $27.97M
Long-Term Debt: $108.13M
Book Value: $685.15M
D/E Ratio: 0.2
Debt/EBITDA: 4.1

With $964.35M in assets and $108.13M in long-term debt, D/E is 0.2and book value is $685.15M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 145% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $33.31M
TTM Free Cash Flow: $135.98M
FCF Margin: 26.9%
FCF / Net Income: 2.8

TTM FCF of $135.98M on $33.31M in operating cash flow. The FCF / Net Income ratio of 2.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.