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Digi International Inc(DGII)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DGII
10/16/2026: DGII (4-star) is currently NOT-A-BUY. Pass it for now.
Digi International is an established technology company focused on mission-critical Internet of Things connectivity. The company distinguishes itself by providing integrated hardware and software solutions for industrial applications where reliability is paramount. Its primary growth story revolves around transitioning from a hardware-reliant model to a software-linked, recurring service revenue base. Investors should note risks, including intense competition from larger networking hardware providers and sensitivity to industrial capital expenditure cycles. This stock may suit investors seeking long-term exposure to the Industrial IoT sector, provided they monitor the company's ability to maintain high service margins and successful integration of strategic acquisitions.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Digi offers steady expansion in the IIoT space but lacks the rapid growth trajectory of high-tech software sectors. |
| Momentum investor | Weak fit | The stock typically moves on long-term fundamental shifts rather than short-term price-action momentum. |
| Value investor | Strong fit while signal remains positive | The company's focus on profitability and recurring revenue can make it attractive when valuation is detached from growth potential. |
| Dividend investor | Weak fit | Digi does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | While established, the company is exposed to tech sector volatility and industrial cycle risks. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Technology and industrial stocks can experience significant swings based on sector sentiment. |
| Valuation risk | Medium | Investors must ensure the current share price properly reflects future service-revenue growth expectations. |
| Competition risk (Network Hardware) | High | Established players like Cisco can pressure margins in core connectivity segments. |
| Business quality | Medium | While the company has a strong reputation, it remains an mid-sized player in a crowded ecosystem. |
| Dividend income | Low / none | There is no dividend income for shareholders to rely on for capital preservation. |
| Execution risk | Medium | Integrating acquisitions and successfully transitioning to a software-centric model is complex and carries inherent risks. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 48.21% | Avg. Invested days 63 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/16/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.65B USD | Price to earnings Ratio 55.48 | 1Y Target Price 85.4 |
Price to earnings Ratio 55.48 | 1Y Target Price 85.4 | ||
Volume (30-day avg) 375.5K shares | Beta 0.96 | 52 Weeks Range 34.41 - 86.84 | Updated Date 10/18/2026 |
52 Weeks Range 34.41 - 86.84 | Updated Date 10/18/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.26 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| IoT Products | Routers, gateways, embedded modules, and console servers. | The company sells the essential hardware that allows industrial machines to talk to the internet. |
| IoT Services | Digi Remote Manager, professional services, and software support. | The company earns recurring subscription fees for managing these connected devices. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 55.48 | Forward PE 23.92 | Enterprise Value 2.96B | Price to Sales(TTM) 5.24 |
Enterprise Value 2.96B | Price to Sales(TTM) 5.24 | ||
Enterprise Value to Revenue 5.63 | Enterprise Value to EBITDA 25.24 | Shares Outstanding 37.95M | Shares Floating 36.97M |
Shares Outstanding 37.95M | Shares Floating 36.97M | ||
Percent Insiders 2.76 | Percent Institutions 106.74 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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