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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
09/18/2026: DGII (3-star) is currently NOT-A-BUY. Pass it for now.
Digi International is a provider of mission-critical IoT connectivity hardware and software designed for industrial and enterprise environments. The company has a leading position in delivering reliable, secure solutions that connect machines and assets in demanding settings. Its primary growth opportunity lies in increasing its recurring software revenue through the Digi Remote Manager platform while capturing demand for 5G connectivity. However, the company faces significant execution risks, including intense competition from larger networking firms and potential hardware supply chain vulnerabilities. Investors should monitor the growth of software-as-a-service (SaaS) revenues and the company's ability to integrate future acquisitions effectively, as it remains a growth-oriented, non-dividend paying stock in a cyclical industry.
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 | The company offers moderate growth potential tied to IoT secular trends but operates in a competitive and cyclical industrial hardware space. |
| Momentum investor | Mixed fit | The stock can experience periods of strong performance, but it is highly dependent on overall market appetite for small-cap industrial tech. |
| Value investor | Mixed fit | Valuation depends heavily on the company's ability to maintain margins while scaling its recurring software service revenue. |
| Dividend investor | Weak fit | The company does not pay a dividend and prioritizes reinvestment over cash distributions. |
| Low-risk investor | Weak fit | Small-cap technology stocks like DGII often experience significant price volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | As a small-cap tech stock, it can be prone to sharper price swings compared to larger industry peers. |
| Valuation risk | Medium | Investors pay for future growth expectations in IoT, which may be sensitive to interest rate changes. |
| Competition risk (Networking/IoT competition) | High | The company competes with much larger entities that have deeper R&D budgets and massive distribution channels. |
| Business quality | Medium | The transition to a more recurring software model is improving quality, though hardware exposure remains a meaningful part of the mix. |
| Dividend income | Low / none | There is no dividend income for investors seeking current yield. |
| Execution risk | Medium | Successful integration of past acquisitions and consistent delivery of software-led solutions are essential for long-term performance. |
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 30.19% | Avg. Invested days 57 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/18/2026 |
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 2.76B USD | Price to earnings Ratio 55.47 | 1Y Target Price 85.4 |
Price to earnings Ratio 55.47 | 1Y Target Price 85.4 | ||
Volume (30-day avg) 376.5K shares | Beta 0.97 | 52 Weeks Range 34.41 - 86.84 | Updated Date 09/18/2026 |
52 Weeks Range 34.41 - 86.84 | Updated Date 09/18/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.31 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| IoT Products | Routers, gateways, and embedded modules for industrial and enterprise connectivity. | The foundational part of the business, generating revenue from hardware sales. |
| IoT Services | Cloud software subscriptions (Digi Remote Manager) and professional consulting. | Higher-margin recurring revenue that investors watch as a key indicator of company health. |
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 55.47 | Forward PE 22.17 | Enterprise Value 2.75B | Price to Sales(TTM) 5.45 |
Enterprise Value 2.75B | Price to Sales(TTM) 5.45 | ||
Enterprise Value to Revenue 5.43 | Enterprise Value to EBITDA 24.38 | Shares Outstanding 37.95M | Shares Floating 36.97M |
Shares Outstanding 37.95M | Shares Floating 36.97M | ||
Percent Insiders 2.76 | Percent Institutions 107.26 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
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.
About Digi International Inc
Exchange NASDAQ | Headquarters 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 | Website https://www.digi.com |
Full time employees 913 | 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. 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.
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