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Digi International Inc (DGII)

Upturn stock ratingUpturn stock rating
$34.86
Last Close (24-hour delay)
Profit since last BUY6.41%
upturn advisory
Consider higher Upturn Star rating
BUY since 35 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Upturn Advisory Summary

06/30/2025: DGII (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

6 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $37.17

1 Year Target Price $37.17

Analysts Price Target For last 52 week
$37.17Target price
Low$20.17
Current$34.86
high$37.06

Analysis of Past Performance

Type Stock
Historic Profit -28.33%
Avg. Invested days 35
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.29B USD
Price to earnings Ratio 30.88
1Y Target Price 37.17
Price to earnings Ratio 30.88
1Y Target Price 37.17
Volume (30-day avg) 6
Beta 0.89
52 Weeks Range 20.17 - 37.06
Updated Date 06/30/2025
52 Weeks Range 20.17 - 37.06
Updated Date 06/30/2025
Dividends yield (FY) -
Basic EPS (TTM) 1.13

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 10.07%
Operating Margin (TTM) 13.14%

Management Effectiveness

Return on Assets (TTM) 4.27%
Return on Equity (TTM) 7.3%

Valuation

Trailing PE 30.88
Forward PE 17.04
Enterprise Value 1351393761
Price to Sales(TTM) 3.09
Enterprise Value 1351393761
Price to Sales(TTM) 3.09
Enterprise Value to Revenue 3.23
Enterprise Value to EBITDA 15.23
Shares Outstanding 37066700
Shares Floating 36184511
Shares Outstanding 37066700
Shares Floating 36184511
Percent Insiders 2.35
Percent Institutions 102.15

Analyst Ratings

Rating 3
Target Price 37.17
Buy 1
Strong Buy 3
Buy 1
Strong Buy 3
Hold 2
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Digi International Inc

stock logo

Company Overview

overview logo History and Background

Digi International Inc. was founded in 1985. Initially focused on developing PC connectivity products, it evolved to specialize in wireless communication and networking solutions for IoT and other applications. Digi has grown through organic development and strategic acquisitions, becoming a key player in the embedded systems and networking market.

business area logo Core Business Areas

  • IoT Products & Services: Provides cellular routers, serial servers, embedded modules, and software for connecting and managing remote devices. This includes Digi Remote Manager, a cloud-based platform for device management.
  • Embedded Systems: Offers embedded modules and single-board computers for various applications, including industrial automation and transportation. Their ConnectCore line is a major offering.
  • Connectivity Solutions: Focuses on delivering robust connectivity solutions, including serial, USB, and Ethernet connectivity products for industrial and commercial applications.

leadership logo Leadership and Structure

Ron Konezny serves as the President and CEO. Digi International has a functional organizational structure with departments like sales, marketing, engineering, and finance. The company has a board of directors responsible for overall governance and strategic direction.

Top Products and Market Share

overview logo Key Offerings

  • Digi Remote Manager: A cloud-based platform providing device management, configuration, and monitoring capabilities for IoT devices. Market share is difficult to pinpoint precisely but is considered a leading platform in its niche. Competitors include Aeris, PTC ThingWorx, and similar IoT management platforms. It contributed to a significant portion of Digi's recurring revenue stream.
  • Digi TransPort Routers: Cellular routers designed for mission-critical connectivity in challenging environments, such as transportation, industrial automation, and retail. Estimated market share in industrial cellular routers is moderately high. Competitors include Sierra Wireless (acquired by Semtech), Cradlepoint, and Cisco.
  • ConnectCore SOMs: System-on-Modules (SOMs) used in embedded systems for industrial, medical, and transportation applications. This is a growing product line within the embedded systems market. Competitors include Toradex, NXP, and other module manufacturers.

Market Dynamics

industry overview logo Industry Overview

The industrial IoT and embedded systems market is experiencing robust growth, driven by increasing adoption of IoT technologies across various sectors. Key trends include the growth of edge computing, demand for secure connectivity solutions, and the integration of AI and machine learning.

Positioning

Digi International is positioned as a provider of reliable and secure connectivity solutions for industrial and commercial IoT applications. Its competitive advantages include its focus on ruggedized products, robust software platforms, and long-standing expertise in the industry.

Total Addressable Market (TAM)

The TAM for the industrial IoT and embedded systems market is estimated to be in the tens of billions of dollars annually. Digi International is positioned to capture a portion of this market with its diverse product portfolio and established customer base.

Upturn SWOT Analysis

Strengths

  • Strong brand reputation in industrial IoT
  • Diverse product portfolio
  • Established customer base
  • Recurring revenue from software and services

Weaknesses

  • Relatively small compared to larger competitors
  • Exposure to cyclical demand in some end markets
  • Dependence on component availability

Opportunities

  • Expanding IoT adoption across industries
  • Growth in edge computing
  • Increasing demand for secure connectivity
  • Strategic acquisitions to expand product offerings

Threats

  • Intense competition
  • Rapid technological changes
  • Economic downturns
  • Supply chain disruptions

Competitors and Market Share

competitor logo Key Competitors

  • SWIR
  • ERIC
  • CSCO

Competitive Landscape

Digi competes with larger players in the networking and communications space. Digi differentiates itself through its focus on industrial IoT and ruggedized solutions, offering a competitive edge in niche markets.

Major Acquisitions

Opengear

  • Year: 2019
  • Acquisition Price (USD millions): 140
  • Strategic Rationale: Acquisition of Opengear, a provider of secure remote access and management solutions, helps Digi to expand its product line and grow customer base in a market adjacency.

Growth Trajectory and Initiatives

Historical Growth: Digi has demonstrated steady growth in recent years, driven by organic expansion and strategic acquisitions.

Future Projections: Analysts predict continued growth for Digi, supported by the expanding IoT market and the company's strategic initiatives.

Recent Initiatives: Recent strategic initiatives include acquisitions to expand product offerings, investments in R&D, and partnerships to enhance market reach.

Summary

Digi International demonstrates a solid position in the industrial IoT market, evidenced by its diverse product range and strategic acquisitions. The company's strengths are tempered by competition and reliance on components. Continued success hinges on capitalizing on market opportunities and managing potential threats. Its recurring revenue from software services contributes to stability, but managing supply chain risks is crucial.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Digi International Investor Relations
  • Yahoo! Finance
  • Company Press Releases
  • Analyst Reports

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and may vary based on the source. Investors should conduct their own due diligence before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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 805
Full time employees 805

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. The company operates in two segments, IoT Products & Services, and IoT Solutions. It 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. The company also provides embedded system products under the Digi Connect, ConnectCore, and Rabbit 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 their 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.