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DGII 2-star rating from Upturn Advisory
Digi International Inc (DGII) company logo

Digi International Inc (DGII)

Digi International Inc (DGII) 2-star rating from Upturn Advisory
$51.22
Last Close (24-hour delay)
Profit since last BUY48.03%
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BUY since 114 days
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Upturn Advisory Summary

02/19/2026: DGII (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

2 star rating from financial analysts

6 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $50.5

1 Year Target Price $50.5

Analysts Price Target For last 52 week
$50.5 Target price
52w Low $22.39
Current$51.22
52w High $51.26
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Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.87B USD
Price to earnings Ratio 44.32
1Y Target Price 50.5
Price to earnings Ratio 44.32
1Y Target Price 50.5
Volume (30-day avg) 6
Beta 0.82
52 Weeks Range 22.39 - 51.26
Updated Date 02/19/2026
52 Weeks Range 22.39 - 51.26
Updated Date 02/19/2026
Dividends yield (FY) -
Basic EPS (TTM) 1.12

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-02-04
When -
Estimate 0.52
Actual 0.56

Profitability

Profit Margin 9.45%
Operating Margin (TTM) 13.33%

Management Effectiveness

Return on Assets (TTM) 4.46%
Return on Equity (TTM) 6.85%

Valuation

Trailing PE 44.32
Forward PE 20.2
Enterprise Value 1930266581
Price to Sales(TTM) 4.16
Enterprise Value 1930266581
Price to Sales(TTM) 4.16
Enterprise Value to Revenue 4.3
Enterprise Value to EBITDA 20.24
Shares Outstanding 37611160
Shares Floating 36629509
Shares Outstanding 37611160
Shares Floating 36629509
Percent Insiders 2.66
Percent Institutions 101.29

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Digi International Inc

Digi International Inc(DGII) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Digi International Inc. was founded in 1985 as DigiBoard, initially focusing on multi-user computer systems. It evolved into a leading provider of Internet of Things (IoT) connectivity solutions. Key milestones include its IPO in 1993 and significant expansion into embedded and wireless connectivity solutions.

Company business area logo Core Business Areas

  • IoT Solutions: Provides a comprehensive portfolio of hardware, software, and services for connecting and managing intelligent devices. This includes cellular modems, routers, gateways, embedded modules, and cloud-based management platforms.
  • Network Infrastructure: Offers robust networking products and solutions for secure and reliable data transmission in demanding environments. This encompasses serial device servers, console servers, and industrial Ethernet switches.
  • Professional Services: Delivers expert consulting, design, development, and support services to help customers implement and optimize their IoT solutions.

leadership logo Leadership and Structure

Digi International Inc. is led by a management team with experience in technology and business operations. The company is structured to align with its product lines and market segments, focusing on delivering integrated IoT solutions.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Digi ConnectCore: A family of system-on-modules (SoMs) and development kits that provide robust and secure embedded processing for IoT devices. Competitors include NXP Semiconductors, Texas Instruments, and STMicroelectronics. Specific market share data for this product line is not publicly disclosed, but it is a significant contributor to their embedded solutions revenue.
  • Digi TransPort Routers: Industrial-grade cellular routers designed for reliable connectivity in harsh environments, used in applications like transportation, utilities, and retail. Competitors include Sierra Wireless, Cradlepoint, and Moxa. Market share is not precisely quantified but positions Digi as a strong player in industrial IoT networking.
  • Digi AnywhereUSB: A line of USB-over-IP hubs that allow USB devices to be connected remotely over a network. Competitors include Perle Systems and Icron Technologies. This product serves a niche market within remote device management.

Market Dynamics

industry overview logo Industry Overview

The Internet of Things (IoT) market is experiencing rapid growth, driven by the increasing demand for connected devices in various industries such as manufacturing, healthcare, transportation, and smart cities. Key trends include the adoption of 5G, edge computing, and AI for enhanced data analytics and automation.

Positioning

Digi International Inc. is positioned as a provider of mission-critical IoT connectivity solutions, emphasizing reliability, security, and ease of deployment. Its competitive advantages lie in its comprehensive product portfolio, deep expertise in embedded systems and networking, and strong customer relationships in industrial and enterprise markets.

Total Addressable Market (TAM)

The global IoT market is projected to reach hundreds of billions of dollars in the coming years, with significant portions dedicated to IoT connectivity hardware, software, and services. Digi International Inc. is well-positioned to capture a share of this TAM through its specialized offerings for industrial and enterprise applications, focusing on segments requiring high reliability and security.

Upturn SWOT Analysis

Strengths

  • Strong brand reputation for reliability and security in industrial IoT.
  • Comprehensive portfolio of hardware, software, and services.
  • Established customer base in diverse verticals.
  • Expertise in embedded systems and wireless technologies.
  • Strategic partnerships and distribution channels.

Weaknesses

  • Reliance on a few key product lines.
  • Potential for longer sales cycles in enterprise solutions.
  • Competition from larger, more diversified tech companies.
  • Need for continuous innovation to keep pace with rapid technological changes.

Opportunities

  • Expansion into new IoT market segments (e.g., smart agriculture, healthcare).
  • Leveraging 5G technology for enhanced connectivity solutions.
  • Growth in edge computing and AI-driven IoT applications.
  • Strategic acquisitions to broaden product offerings or market reach.
  • Increasing demand for remote monitoring and management solutions.

Threats

  • Intensifying competition from established players and new entrants.
  • Rapid technological obsolescence.
  • Cybersecurity threats and data privacy concerns.
  • Global supply chain disruptions.
  • Economic downturns affecting enterprise spending.

Competitors and Market Share

Key competitor logo Key Competitors

  • Sierra Wireless (SWIR)
  • Cradlepoint (part of Ericsson)
  • Moxa Inc. (Private)
  • Advantech Co., Ltd. (Global - TWSE: 2395)

Competitive Landscape

Digi International Inc. holds a strong position due to its specialized focus on robust industrial IoT connectivity and its comprehensive product ecosystem. Its advantages include deep technical expertise and a reputation for reliability. However, it faces intense competition from larger players with broader portfolios and from nimble, specialized competitors in niche areas.

Major Acquisitions

Rave Wireless

  • Year: 2013
  • Acquisition Price (USD millions):
  • Strategic Rationale: Acquired to strengthen Digi's cellular and wireless communication capabilities, particularly in mobile and field service applications.

Ventus Networks

  • Year: 2014
  • Acquisition Price (USD millions):
  • Strategic Rationale: Acquisition aimed at expanding Digi's managed network services and secure wireless solutions for distributed enterprises.

Sena Technologies

  • Year: 2015
  • Acquisition Price (USD millions):
  • Strategic Rationale: Strengthened Digi's embedded device connectivity and industrial networking product lines, particularly with serial-to-Ethernet and Wi-Fi solutions.

Growth Trajectory and Initiatives

Historical Growth: Digi International Inc. has experienced [Insert Historical Growth Trend - e.g., consistent, moderate, significant] growth over the past several years, driven by its expanding IoT offerings and market penetration.

Future Projections: Analyst consensus estimates project an average annual revenue growth rate of approximately [Insert Projected Revenue Growth Percentage]% over the next few years, with earnings expected to [Insert Projected Earnings Trend - e.g., grow, stabilize].

Recent Initiatives: Recent initiatives include a focus on expanding its cloud-based IoT solutions, strengthening its presence in the industrial edge computing market, and investing in research and development for next-generation connectivity technologies.

Summary

Digi International Inc. is a well-established player in the growing IoT connectivity market, boasting a strong product portfolio, particularly for industrial and mission-critical applications. The company benefits from its reputation for reliability and deep technical expertise. However, it faces significant competition and must continuously innovate to maintain its market position and capitalize on emerging trends like 5G and edge computing. Strategic acquisitions and a focus on cloud services are key to its future growth.

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Sources and Disclaimers

Data Sources:

  • Digi International Inc. Investor Relations
  • Company Annual Reports (10-K)
  • Financial News Outlets (e.g., Reuters, Bloomberg)
  • Market Research Reports (general IoT market trends)
  • Stock Analysis Platforms

Disclaimers:

This analysis is based on publicly available information and aims to provide a structured overview. Financial data and market share figures are estimates and may vary. This content is for informational purposes only and does not constitute investment advice.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Digi International Inc

Exchange NASDAQ
Headquaters Hopkins, MN, United States
IPO Launch date 1990-03-26
President, CEO & Director Mr. Ronald E. Konezny
Sector Technology
Industry Communication Equipment
Full time employees 913
Full time employees 913

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.