Digi International Gross Profit vs. Revenue

DGII Stock  USD 33.22  0.55  1.68%   
Taking into consideration Digi International's profitability measurements, Digi International is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess Digi International's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1987-12-31
Previous Quarter
57 M
Current Value
64.2 M
Quarterly Volatility
13.6 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Digi International's Days Sales Outstanding is increasing as compared to previous years. The Digi International's current Sales General And Administrative To Revenue is estimated to increase to 0.25, while Price To Sales Ratio is projected to decrease to 2.26. As of now, Digi International's Net Income Applicable To Common Shares is increasing as compared to previous years. The Digi International's current Net Income From Continuing Ops is estimated to increase to about 29.9 M, while Accumulated Other Comprehensive Income is forecasted to increase to (22.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.590.5893
Slightly Up
Slightly volatile
Net Profit Margin0.0640.0531
Fairly Up
Pretty Stable
Pretax Profit Margin0.09050.0539
Way Up
Slightly volatile
Return On Assets0.02620.0276
Notably Down
Slightly volatile
Return On Equity0.07440.0387
Way Up
Slightly volatile
For Digi International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Digi International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Digi International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Digi International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Digi International over time as well as its relative position and ranking within its peers.
  

Digi International's Revenue Breakdown by Earning Segment

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For more detail on how to invest in Digi Stock please use our How to Invest in Digi International guide.
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
0.61
Revenue Per Share
11.677
Quarterly Revenue Growth
(0.06)
Return On Assets
0.0364
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.
Please note, there is a significant difference between Digi International's value and its price as these two are different measures arrived at by different 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.

Digi International Revenue vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Digi International's current stock value. Our valuation model uses many indicators to compare Digi International value to that of its competitors to determine the firm's financial worth.
Digi International is rated below average in gross profit category among its peers. It is rated below average in revenue category among its peers totaling about  1.91  of Revenue per Gross Profit. As of now, Digi International's Gross Profit is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Digi International's earnings, one of the primary drivers of an investment's value.

Digi International's Earnings Breakdown by Geography

Digi Revenue vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Digi International

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
221.58 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Digi International

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
424.05 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Digi Revenue vs Competition

Digi International is rated below average in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 16.97 Billion. Digi International holds roughly 424.05 Million in revenue claiming about 2.5% of equities under Information Technology industry.

Digi International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Digi International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Digi International will eventually generate negative long term returns. The profitability progress is the general direction of Digi International's change in net profit over the period of time. It can combine multiple indicators of Digi International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-23.7 M-22.6 M
Operating Income48.1 M50.5 M
Income Before Tax22.9 M24 M
Total Other Income Expense Net-25.2 M-24 M
Net Income22.5 M23.6 M
Income Tax Expense353 K335.4 K
Net Income Applicable To Common Shares22.3 M23.4 M
Net Income From Continuing Ops28.5 M29.9 M
Non Operating Income Net Other-17.6 M-16.8 M
Interest Income9.9 K9.4 K
Net Interest Income-21.6 M-20.5 M
Change To Netincome21.1 M22.2 M
Net Income Per Share 0.62  0.65 
Income Quality 3.69  3.88 
Net Income Per E B T 0.98  0.68 

Digi Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Digi International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Digi International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Digi International's important profitability drivers and their relationship over time.

Use Digi International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Digi International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Digi International will appreciate offsetting losses from the drop in the long position's value.

Digi International Pair Trading

Digi International Pair Trading Analysis

The ability to find closely correlated positions to Digi International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Digi International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Digi International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Digi International to buy it.
The correlation of Digi International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Digi International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Digi International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Digi International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Digi International position

In addition to having Digi International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Electrical Equipment Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electrical Equipment Theme or any other thematic opportunities.
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When determining whether Digi International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Digi International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digi International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digi International Stock:
Check out Investing Opportunities.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Digi International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Digi International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Digi International's income statement, its balance sheet, and the statement of cash flows.
Potential Digi International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Digi International investors may work on each financial statement separately, they are all related. The changes in Digi International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Digi International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.