📊 DGII Key Takeaways
Investment Thesis
DGII demonstrates strong operational efficiency with 62.4% gross margins and impressive 28.7% free cash flow margins, indicating excellent cash generation capability. Net income growth of 81.3% YoY despite flat revenue suggests improving operational leverage and margin expansion, though profitability metrics remain modest relative to asset base.
DGII Strengths
- Exceptional free cash flow generation (28.7% FCF margin, $35.2M annually) provides financial flexibility
- Strong net income growth of 81.3% YoY with improving profitability demonstrates operational leverage
- Healthy gross margins of 62.4% indicate strong pricing power and product-market fit
- Conservative leverage with 0.21x debt-to-equity ratio and manageable 2.6x interest coverage
DGII Risks
- Flat revenue growth (0.0% YoY) indicates stagnant top-line expansion and potential market maturity
- Low absolute profitability returns: 1.8% ROE and 1.3% ROA suggest capital is not being deployed efficiently despite strong cash generation
- Quick ratio of 0.90x below 1.0x indicates potential short-term liquidity constraints without inventory conversion
- Modest absolute net margin of 9.6% limits reinvestment capacity relative to $918.4M asset base
Key Metrics to Watch
- Revenue growth trajectory - must demonstrate top-line expansion to validate operational improvements
- Return on assets and equity - need significant improvement to justify large asset/equity base
- Operating cash flow sustainability - maintain current FCF generation levels above $30M annually
- Gross margin stability - monitor for compression during competitive pricing pressure
DGII Financial Metrics
💡 AI Analyst Insight
The 28.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
DGII Profitability Ratios
DGII vs Technology Sector
How DIGI INTERNATIONAL INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DGII Balance Sheet & Liquidity
DGII 5-Year Financial Trend
5-Year Trend Summary: DIGI INTERNATIONAL INC's revenue has grown significantly by 44% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.67 reflects profitable operations.
DGII Growth Metrics (YoY)
DGII Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $103.9M | $10.1M | $0.27 |
| Q3 2025 | $105.2M | $9.7M | $0.26 |
| Q2 2025 | $104.5M | $940.0K | $0.03 |
| Q1 2025 | $103.9M | -$3.1M | $-0.08 |
| Q3 2024 | $105.2M | $6.7M | $0.18 |
| Q2 2024 | $107.7M | $940.0K | $0.03 |
| Q1 2024 | $106.1M | -$3.1M | $-0.08 |
| Q3 2023 | $103.5M | $4.1M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DGII Capital Allocation
DGII SEC Filings
Access official SEC EDGAR filings for DIGI INTERNATIONAL INC (CIK: 0000854775)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 5, 2026 | 8-K | dgii-20260227.htm | View → |
| Feb 12, 2026 | 4 | xslF345X05/form4-02122026_100241.xml | View → |
| Feb 11, 2026 | 4 | xslF345X05/form4-02112026_110259.xml | View → |
| Feb 11, 2026 | 4 | xslF345X05/form4-02112026_110230.xml | View → |
| Feb 11, 2026 | 4 | xslF345X05/form4-02112026_110255.xml | View → |
❓ Frequently Asked Questions about DGII
What is the AI rating for DGII?
DIGI INTERNATIONAL INC (DGII) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DGII's key strengths?
Claude: Exceptional free cash flow generation (28.7% FCF margin, $35.2M annually) provides financial flexibility. Strong net income growth of 81.3% YoY with improving profitability demonstrates operational leverage.
What are the risks of investing in DGII?
Claude: Flat revenue growth (0.0% YoY) indicates stagnant top-line expansion and potential market maturity. Low absolute profitability returns: 1.8% ROE and 1.3% ROA suggest capital is not being deployed efficiently despite strong cash generation.
What is DGII's revenue and growth?
DIGI INTERNATIONAL INC reported revenue of $122.5M.
Does DGII pay dividends?
DIGI INTERNATIONAL INC does not currently pay dividends.
Where can I find DGII SEC filings?
Official SEC filings for DIGI INTERNATIONAL INC (CIK: 0000854775) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DGII's EPS?
DIGI INTERNATIONAL INC has a diluted EPS of $0.31.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.