Is Digi International Stock a Good Investment?
Digi International Investment Advice | DGII |
- Examine Digi International's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Digi International's leadership team and their track record. Good management can help Digi International navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Digi International's business and its evolving consumer preferences.
- Compare Digi International's performance and market position to its competitors. Analyze how Digi International is positioned in terms of product offerings, innovation, and market share.
- Check if Digi International pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Digi International's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Digi International stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Digi International is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Digi International Stock
Researching Digi International's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Digi International was currently reported as 16.01. The company has Price/Earnings To Growth (PEG) ratio of 1.15. Digi International had not issued any dividends in recent years. The entity had 3:2 split on the 1st of April 1992.
To determine if Digi International is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Digi International's research are outlined below:
| Digi International had very high historical volatility over the last 90 days | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Digi International Inc Unveils 5G-Integrated Console Manager for Enhanced Network Management |
Digi International uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Digi International. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Digi International's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of November 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Digi International's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Digi International's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-08-04 | 2021-06-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2021-05-05 | 2021-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2020-05-07 | 2020-03-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2015-01-22 | 2014-12-31 | -0.02 | -0.01 | 0.01 | 50 | ||
2014-10-30 | 2014-09-30 | 0.03 | 0.02 | -0.01 | 33 | ||
2013-10-31 | 2013-09-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2013-01-24 | 2012-12-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2012-01-19 | 2011-12-31 | 0.02 | 0.03 | 0.01 | 50 |
Digi International Target Price Consensus
Digi target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Digi International's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 5 | Buy |
Most Digi analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Digi stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Digi International, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationDigi International Target Price Projection
Digi International's current and average target prices are 34.50 and 37.10, respectively. The current price of Digi International is the price at which Digi International is currently trading. On the other hand, Digi International's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Digi International Market Quote on 17th of February 2025
Target Price
Analyst Consensus On Digi International Target Price
Digi International Analyst Ratings
Digi International's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Digi International stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Digi International's financials, market performance, and future outlook by experienced professionals. Digi International's historical ratings below, therefore, can serve as a valuable tool for investors.Know Digi International's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Digi International is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Digi International backward and forwards among themselves. Digi International's institutional investor refers to the entity that pools money to purchase Digi International's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jpmorgan Chase & Co | 2024-09-30 | 785.2 K | New York State Common Retirement Fund | 2024-12-31 | 656.6 K | Global Alpha Capital Management Ltd. | 2024-12-31 | 587.4 K | Northern Trust Corp | 2024-09-30 | 515.8 K | Adage Capital Partners Gp Llc | 2024-09-30 | 499 K | Wellington Management Company Llp | 2024-12-31 | 437.7 K | Wells Fargo & Co | 2024-09-30 | 433.7 K | Ameriprise Financial Inc | 2024-09-30 | 330.9 K | Envestnet Asset Management Inc | 2024-09-30 | 330.1 K | Blackrock Inc | 2024-09-30 | 6 M | Conestoga Capital Advisors, Llc | 2024-12-31 | 3.6 M |
Digi International's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.27 B.Market Cap |
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Digi International's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.12 | 0.08 | |
| Return On Capital Employed | 0.08 | 0.13 | |
| Return On Assets | 0.03 | 0.03 | |
| Return On Equity | 0.04 | 0.07 |
Determining Digi International's profitability involves analyzing its financial statements and using various financial metrics to determine if Digi International is a good buy. For example, gross profit margin measures Digi International's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Digi International's profitability and make more informed investment decisions.
Digi International's Earnings Breakdown by Geography
Evaluate Digi International's management efficiency
Digi International has return on total asset (ROA) of 0.0379 % which means that it generated a profit of $0.0379 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0629 %, meaning that it created $0.0629 on every $100 dollars invested by stockholders. Digi International's management efficiency ratios could be used to measure how well Digi International manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Digi International's Return On Capital Employed is decreasing as compared to previous years. The Digi International's current Return On Equity is estimated to increase to 0.07, while Return On Tangible Assets are projected to decrease to 0.08. As of now, Digi International's Intangible Assets are increasing as compared to previous years. The Digi International's current Other Assets is estimated to increase to about 830.4 M, while Total Current Assets are projected to decrease to under 130.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 14.40 | 15.12 | |
| Tangible Book Value Per Share | (0.46) | (0.44) | |
| Enterprise Value Over EBITDA | 13.89 | 9.46 | |
| Price Book Value Ratio | 1.98 | 2.85 | |
| Enterprise Value Multiple | 13.89 | 9.46 | |
| Price Fair Value | 1.98 | 2.85 | |
| Enterprise Value | 530.4 M | 556.9 M |
The operational strategies employed by Digi International management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Beta 1.064 |
Basic technical analysis of Digi Stock
As of the 17th of February 2025, Digi International shows the Coefficient Of Variation of 2123.8, mean deviation of 1.8, and Downside Deviation of 2.23. Digi International technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Digi International's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Digi International insiders, such as employees or executives, is commonly permitted as long as it does not rely on Digi International's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Digi International insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Digi International's Outstanding Corporate Bonds
Digi International issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Digi International uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Digi bonds can be classified according to their maturity, which is the date when Digi International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Digi International's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Digi International's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0409 | |||
| Market Risk Adjusted Performance | 0.1409 | |||
| Mean Deviation | 1.8 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.23 | |||
| Coefficient Of Variation | 2123.8 | |||
| Standard Deviation | 2.94 | |||
| Variance | 8.62 | |||
| Information Ratio | 0.0433 | |||
| Jensen Alpha | 0.1271 | |||
| Total Risk Alpha | 0.1236 | |||
| Sortino Ratio | 0.0569 | |||
| Treynor Ratio | 0.1309 | |||
| Maximum Drawdown | 19.32 | |||
| Value At Risk | (3.84) | |||
| Potential Upside | 3.8 | |||
| Downside Variance | 4.99 | |||
| Semi Variance | 3.77 | |||
| Expected Short fall | (1.82) | |||
| Skewness | 3.06 | |||
| Kurtosis | 17.49 |
| Risk Adjusted Performance | 0.0409 | |||
| Market Risk Adjusted Performance | 0.1409 | |||
| Mean Deviation | 1.8 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.23 | |||
| Coefficient Of Variation | 2123.8 | |||
| Standard Deviation | 2.94 | |||
| Variance | 8.62 | |||
| Information Ratio | 0.0433 | |||
| Jensen Alpha | 0.1271 | |||
| Total Risk Alpha | 0.1236 | |||
| Sortino Ratio | 0.0569 | |||
| Treynor Ratio | 0.1309 | |||
| Maximum Drawdown | 19.32 | |||
| Value At Risk | (3.84) | |||
| Potential Upside | 3.8 | |||
| Downside Variance | 4.99 | |||
| Semi Variance | 3.77 | |||
| Expected Short fall | (1.82) | |||
| Skewness | 3.06 | |||
| Kurtosis | 17.49 |
Consider Digi International's intraday indicators
Digi International intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Digi International stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Digi International Corporate Filings
F3 | 12th of February 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
8K | 5th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 10th of January 2025 Other Reports | ViewVerify | |
| 18th of December 2024 Other Reports | ViewVerify |
Digi Stock media impact
Far too much social signal, news, headlines, and media speculation about Digi International that are available to investors today. That information is available publicly through Digi media outlets and privately through word of mouth or via Digi internal channels. However, regardless of the origin, that massive amount of Digi data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Digi International news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Digi International relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Digi International's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Digi International alpha.
Digi International Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Digi International can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Digi International Corporate Management
| Mandi Karasek | VP HR | Profile | |
| Terrence Schneider | Senior Management | Profile | |
| Brian Ballenger | Interim Treasurer and Acting Principal Financial Officer and Principal Accounting Officer | Profile | |
| Justin Schmid | Senior Solutions | Profile | |
| James Freeland | Senior Officer | Profile | |
| Gary Marks | Senior Opengear | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Digi International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more detail on how to invest in Digi Stock please use our How to Invest in Digi International guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Digi International. If investors know Digi will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Digi International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.881 | Earnings Share 0.96 | Revenue Per Share | Quarterly Revenue Growth (0.02) | Return On Assets |
The market value of Digi International is measured differently than its book value, which is the value of Digi that is recorded on the company's balance sheet. Investors also form their own opinion of Digi International's value that differs from its market value or its book value, called intrinsic value, which is Digi International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Digi International's market value can be influenced by many factors that don't directly affect Digi International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Digi International's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Digi International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digi International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.