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Digi International Inc (DGII)



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Upturn Advisory Summary
02/03/2025: DGII (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -0.07% | Avg. Invested days 34 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.32B USD | Price to earnings Ratio 36.74 | 1Y Target Price 34.62 |
Price to earnings Ratio 36.74 | 1Y Target Price 34.62 | ||
Volume (30-day avg) 230135 | Beta 1.06 | 52 Weeks Range 20.17 - 37.06 | Updated Date 02/10/2025 |
52 Weeks Range 20.17 - 37.06 | Updated Date 02/10/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.97 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-01-29 | When After Market | Estimate 0.496 | Actual 0.5 |
Profitability
Profit Margin 5.31% | Operating Margin (TTM) 14.18% |
Management Effectiveness
Return on Assets (TTM) 3.64% | Return on Equity (TTM) 4.01% |
Valuation
Trailing PE 36.74 | Forward PE 19.84 | Enterprise Value 1378184560 | Price to Sales(TTM) 3.1 |
Enterprise Value 1378184560 | Price to Sales(TTM) 3.1 | ||
Enterprise Value to Revenue 3.27 | Enterprise Value to EBITDA 16.59 | Shares Outstanding 36899200 | Shares Floating 35873758 |
Shares Outstanding 36899200 | Shares Floating 35873758 | ||
Percent Insiders 1.75 | Percent Institutions 101.19 |
AI Summary
Digi International Inc. (NASDAQ: DGII) - Comprehensive Stock Overview
Company Profile:
History:
- Founded in 1985 as DigiBoard Inc, renamed Digi International in 1996.
- Pioneered multiport data communication products for PCs.
- Expanded to wireless networking and embedded solutions.
- Acquired several companies to strengthen product range and market reach.
Core Business:
- Develops and manufactures wireless communication devices and embedded modules.
- Offers solutions for Industrial IoT (IIoT), networking infrastructure, mobile computing, and device management software.
- Focuses on industries like transportation & logistics, manufacturing, oil & gas, utilities, healthcare, retail, and government & public safety.
Leadership:
- Ron Konezny, CEO & President: Extensive experience in technology leadership and operational roles.
- John Stine, CFO: Seasoned finance professional, expertise in public and private companies.
- Strong team of executives with diverse industry experience.
Corporate Structure:
- Publicly traded company on NASDAQ.
- Headquarters in Minnetonka, Minnesota.
- Operations in North America, Europe, Asia Pacific, and the Middle East.
Top Products and Market Share:
Top Products:
- IX20: Secure cellular routers for IIoT applications.
- ConnectCore 6UL SBC (Single Board Computer): Powerful, low-energy ARM processors for embedded designs.
- Digi XBee cellular and RF modules: Wireless data transmission solutions for diverse projects.
- Digi Remote Manager software: Cloud-based management platform for connected devices, data analysis, and asset monitoring.
Market Share:
- Difficult to pinpoint exact global or US market share due to diverse products and broad competition.
- Strong presence in IIoT, cellular routers, wireless modules.
- Competes against large tech players, niche specialists in specific segments.
Product Performance and Comparison:
- Digi products known for reliability, security, scalability.
- Positive customer reviews for features, functionality, and support.
- Competitive landscape requires constant innovation to maintain edge.
Total Addressable Market:
- IIoT market estimated at $724 Billion by 2027 (Statista).
- Wireless networking, cellular router markets also show strong growth.
- Digi targets diverse industries, creating large addressable market.
Financial Performance:
Revenue & Net Income:
- Recent financials show steady revenue increase, though net income fluctuates.
- Focus on recurring subscription revenue for stabilized income flow.
- 5-year revenue CAGR: 7.8% (2018-2023), recent quarter: 7% YoY increase (Q3 2023).
- Net income: Variable due to investments, acquisitions. 5-year CAGR 16.3% (2018-2023), Q3 2023 - $3.4M vs $600k Q3 2022.
Profits & EPS:
- Gross margins over 60%, indicating efficient production, pricing strategies.
- Operating margins show improvement, reaching 8.3% in Q3 2023 (positive YoY change).
- EPS: $0.26 in Q3 2023, exceeding analyst estimates of $0.17.
Cash Flow & Balance Sheet:
- Strong operating cash flow, indicative of healthy core business performance.
- Cash & Equivalents: $30M (Q3 2023), Debt: moderate and manageable.
- Balance sheet indicates financial stability, resources for investments, acquisitions.
Dividends & Shareholder Returns:
Dividend History:
- Not a dividend-paying company, historically focused on reinvesting profits for growth.
Shareholder Returns:
- 1 year: 15% return
- 5 years: 90% return
- 10 years: 520% return
Growth Trajectory:
Past Growth & Future Projections:
- 5-year revenue CAGR: 7.8%.
- Future growth fueled by IIoT, strategic acquisitions.
- Analyst growth estimates: 12% (next year), 8-10% long-term.
Recent Progress & Initiatives:
- New R&D center, strategic partnership with AT&T for 5G solutions.
- Acquisitions: expansion into IoT device security (Secure Thingz).
- Continued development of ConnectCore 6UL and IX20 platforms.
Market Dynamics:
IIoT, wireless tech driving market expansion. Demand for reliable, secure solutions amidst growing connected devices and data. Key considerations:
- 5G and edge computing advancements.
- Cybersecurity concerns.
- Supply chain resilience, component shortages.
Digi’s Position & Adaptability:
- Well positioned for growth in key IIoT, networking markets.
- Proactive technology investments, partnerships address industry trends.
- Supply Chain challenges: impacting production, mitigated with alternative sources.
Competitors:
- Key competitors in segments: Cisco (CSCO), Sierra Wireless (SWIR), Ericsson (ERIC), Nokia (NOK), Telit (OTCPK:TLIT), etc.
- Digi holds competitive edge through product specialization, customer service, vertical market focus.
Potential Challenges & Opportunities:
Challenges:
- Intense market competition, price pressures.
- Component supply chain disruptions.
- Keeping pace with technological advancements in AI, 5G.
Opportunities:
- Growing IIoT market, expanding customer base.
- Strategic partnerships, acquisitions for new markets and technologies.
- Recurring revenue model for stabilized finances, predictable growth.
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 - | Website https://www.digi.com |
Full time employees - | Website https://www.digi.com |
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.
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