DGII Technology

Digi International Inc.

$72.03+0.28%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Technology
Industry: Communication Equipment
Country: United States
Market cap: 2.7B USD
Enterprise value: 2.7B USD
Full-time employees: 913

Overall health

Drawback: less short-term liquidity (current ratio 1.13 vs a peer median of 1.83)less liquidity (current ratio 1.13 vs peers 1.83)
About average: valuation and risk (debt, liquidity and share-price swings)valuation and risk

Ranks #705 of 1,612 technology companies (top 44%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $42M vs $15M spent repurchasing shares over the 3 fiscal years to FY Sep 2025.
Over three fiscal years Digi International recorded $42M of stock-based pay expense and spent $15M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Digi International recorded $42M of stock-based pay expense and spent $15M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Operating margin at a 6-year high. 13% in FY Sep 2025, the best of the last 6 years.
Digi International kept 13% of revenue as operating profit in FY Sep 2025, its highest in the 6 years of filings we have.
Profits growing faster than sales. Since FY Sep 2022: revenue +11%, operating profit +47%.
Since FY Sep 2022, Digi International's revenue grew 11% while operating profit grew 47%: each extra dollar of sales is adding more profit.
Cash flow well above reported profit. Free cash flow is 2.8× reported profit.
Free cash flow is 2.8× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

StockQuotient Score

54/ 100▲ 1 since Oct 27 close

Oct 5 54 → Nov 4 54

Valuation

Is the price right?

48/100

Moderate▲ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 46 → 48

Share price -8.6%+3
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield1.8%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.21Sector median: 0.0225 · MAD: 0.0225

EBITDA yield3.7%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.14Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield5.0%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.81Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield25.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

61/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 6.6%

Why

Stronger than most peers on:

▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth11.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.02Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth4.9%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.01Sector median: 0.0483 · MAD: 0.0793

Revenue growth20.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.15Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

63/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin13.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.08Sector median: 0.0631 · MAD: 0.0710

Return on assets5.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.59Sector median: 0.0293 · MAD: 0.0362

Return on invested capital7.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.06Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin63.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity7.1%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Debt down 24%

Why

Held back by:

▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.96

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.25Sector median: 0.8710 · MAD: 0.3700

Current ratio1.13×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.02Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.16×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.40Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Digi International

Is Digi International getting weaker?: Its latest SEC filing (Aug 5, 2026) got stronger: debt down 24%. Its overall score is 54/100, up 1 since Oct 28, 2026.
How is Digi International valued vs its peers?: Priced about in line with its peers. Valuation scores 48/100 against 1,711 technology peers. Free cash flow yield 5.0% vs a peer median of 2.7% (stronger than 64% of peers).Free cash flow yield 5.0% vs peers 2.7% (stronger than 64% of peers).
Is Digi International growing?: Yes, faster than most of its peers. Growth scores 61/100 against 1,711 technology peers. Revenue growth 20.3% vs a peer median of 8.5% (stronger than 76% of peers).Revenue growth 20.3% vs peers 8.5% (stronger than 76% of peers).
How profitable is Digi International?: More profitable than most of its peers. Profitability scores 63/100 against 1,711 technology peers. Operating margin 13.9% vs a peer median of 6.3% (stronger than 74% of peers).Operating margin 13.9% vs peers 6.3% (stronger than 74% of peers).
How risky is Digi International?: Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 1.13× vs a peer median of 1.83× (weaker than 82% of peers).Current ratio 1.13× vs peers 1.83× (weaker than 82% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 5, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Debt down 24%

	Previous quarter	Latest quarter	Change
Revenue (12 months)	475.1M USD	506.2M USD	+6.6%
Net income (12 months)	43.2M USD	48.7M USD	+12.7%
Operating margin	13.2%	13.9%	+0.8 pts
Free cash flow (12 months)	126.5M USD	136.0M USD	+7.5%
Debt	143.0M USD	108.1M USD	−24.4%
Cash	31.7M USD	28.0M USD	−11.9%
Shares outstanding	37.7M	37.9M	+0.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Technology · 320 companies

Valuations in Technology are above their usual range since 2016.

70% of months since 2016 were valued lower than now.
37% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +5% and earnings +25% (medians): earnings grew faster than prices.
Median price-to-sales is +68% vs the whole market, against a usual +58%.

2016Shaded: most expensive fifth of its range2026

Shown for Technology: too few Communication Equipment companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Sep 2021	FY Sep 2022	FY Sep 2023	FY Sep 2024	FY Sep 2025	Change
Gross margin	54.0%	55.7%	56.7%	58.9%	62.9%	▲ 4.0 pts
Operating margin	3.4%	9.8%	11.3%	11.3%	13.1%	▲ 1.7 pts
Net margin	3.4%	5.0%	5.6%	5.3%	9.5%	▲ 4.2 pts
Return on assets (ROA)	1.7%	2.3%	3.0%	2.8%	4.4%	▲ 1.7 pts
Return on equity (ROE)	2.2%	3.9%	4.6%	3.9%	6.4%	▲ 2.5 pts
Free cash flow margin	18.0%	9.2%	7.3%	19.1%	24.5%	▲ 5.4 pts
Current ratio	4.18×	1.72×	1.93×	1.73×	1.21×	▼ 30%
Quick ratio	3.44×	0.96×	1.07×	1.13×	0.85×	▼ 25%
Debt to equity	0.10×	0.47×	0.38×	0.21×	0.25×	▲ 18%
Interest coverage	7.60×	1.94×	1.99×	3.12×	8.91×	▲ 186%

DGII price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: less short-term liquidity (current ratio 1.13 vs a peer median of 1.83)less liquidity (current ratio 1.13 vs peers 1.83)

About average: valuation and risk (debt, liquidity and share-price swings)valuation and risk

Ranks #705 of 1,612 technology companies (top 44%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $42M vs $15M spent repurchasing shares over the 3 fiscal years to FY Sep 2025.

Over three fiscal years Digi International recorded $42M of stock-based pay expense and spent $15M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Digi International recorded $42M of stock-based pay expense and spent $15M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Operating margin at a 6-year high. 13% in FY Sep 2025, the best of the last 6 years.

Digi International kept 13% of revenue as operating profit in FY Sep 2025, its highest in the 6 years of filings we have.

Profits growing faster than sales. Since FY Sep 2022: revenue +11%, operating profit +47%.

Since FY Sep 2022, Digi International's revenue grew 11% while operating profit grew 47%: each extra dollar of sales is adding more profit.

Cash flow well above reported profit. Free cash flow is 2.8× reported profit.

Free cash flow is 2.8× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

Questions investors ask about Digi International

Is Digi International getting weaker?

Its latest SEC filing (Aug 5, 2026) got stronger: debt down 24%. Its overall score is 54/100, up 1 since Oct 28, 2026.

How is Digi International valued vs its peers?

Priced about in line with its peers. Valuation scores 48/100 against 1,711 technology peers. Free cash flow yield 5.0% vs a peer median of 2.7% (stronger than 64% of peers).Free cash flow yield 5.0% vs peers 2.7% (stronger than 64% of peers).

Is Digi International growing?

Yes, faster than most of its peers. Growth scores 61/100 against 1,711 technology peers. Revenue growth 20.3% vs a peer median of 8.5% (stronger than 76% of peers).Revenue growth 20.3% vs peers 8.5% (stronger than 76% of peers).

How profitable is Digi International?

More profitable than most of its peers. Profitability scores 63/100 against 1,711 technology peers. Operating margin 13.9% vs a peer median of 6.3% (stronger than 74% of peers).Operating margin 13.9% vs peers 6.3% (stronger than 74% of peers).

How risky is Digi International?

Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 1.13× vs a peer median of 1.83× (weaker than 82% of peers).Current ratio 1.13× vs peers 1.83× (weaker than 82% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

475.1M USD

506.2M USD

+6.6%

Net income (12 months)

43.2M USD

48.7M USD

+12.7%

Operating margin

13.2%

13.9%

+0.8 pts

Free cash flow (12 months)

126.5M USD

136.0M USD

+7.5%

Debt

143.0M USD

108.1M USD

−24.4%

Cash

31.7M USD

28.0M USD

−11.9%

Shares outstanding

37.7M

37.9M

+0.7%

Key ratios

FY Sep 2021

FY Sep 2022

FY Sep 2023

FY Sep 2024

FY Sep 2025

Change

Gross margin

54.0%

55.7%

56.7%

58.9%

62.9%

▲ 4.0 pts

Operating margin

3.4%

9.8%

11.3%

13.1%

▲ 1.7 pts

Net margin

3.4%

5.0%

5.6%

5.3%

9.5%

▲ 4.2 pts

Return on assets (ROA)

1.7%

2.3%

3.0%

2.8%

4.4%

▲ 1.7 pts

Return on equity (ROE)

2.2%

3.9%

4.6%

3.9%

6.4%

▲ 2.5 pts

Free cash flow margin

18.0%

9.2%

7.3%

19.1%

24.5%

▲ 5.4 pts

Current ratio

4.18×

1.72×

1.93×

1.73×

1.21×

▼ 30%

Quick ratio

3.44×

0.96×

1.07×

1.13×

0.85×

▼ 25%

Debt to equity

0.10×

0.47×

0.38×

0.21×

0.25×

▲ 18%

Interest coverage

7.60×

1.94×

1.99×

3.12×

8.91×

▲ 186%