Digi International Inc
DGII
Computer Communications Equipment
Mkt Cap
$917.6MPE
65.39Debt
$173MCash
$23.8MEV
$1.067BFCF
$56.58MP/E Ratio
65.39Debt
$173MCash
$23.8MEV
$1.067BFCF
$56.58MCharts data: {"Earnings":[{"time":"2014-09-29","value":1751000},{"time":"2015-09-29","value":6588000},{"time":"2016-09-29","value":16708000},{"time":"2017-09-29","value":9366000},{"time":"2018-09-29","value":1303000},{"time":"2019-09-29","value":9958000},{"time":"2020-09-29","value":8411000},{"time":"2021-09-29","value":10366000},{"time":"2022-09-29","value":19383000},{"time":"2023-09-29","value":24770000}],"Sales":[{"time":"2014-09-29","value":192701000},{"time":"2015-09-29","value":203847000},{"time":"2016-09-29","value":203005000},{"time":"2017-09-29","value":181634000},{"time":"2018-09-29","value":228366000},{"time":"2019-09-29","value":254203000},{"time":"2020-09-29","value":279271000},{"time":"2021-09-29","value":308632000},{"time":"2022-09-29","value":388225000},{"time":"2023-09-29","value":444849000}],"Net Margins":[{"time":"2014-09-29","value":0.009086616052848714},{"time":"2015-09-29","value":0.0323183564143696},{"time":"2016-09-29","value":0.08230339154208025},{"time":"2017-09-29","value":0.051565235583646236},{"time":"2018-09-29","value":0.005705753045549688},{"time":"2019-09-29","value":0.039173416521441524},{"time":"2020-09-29","value":0.030117699295666215},{"time":"2021-09-29","value":0.03358692552943311},{"time":"2022-09-29","value":0.049927232919054675},{"time":"2023-09-29","value":0.05568181562732523}],"Assets":[{"time":"2014-09-29","value":290459000},{"time":"2015-09-29","value":300360000},{"time":"2016-09-29","value":336166000},{"time":"2017-09-29","value":345189000},{"time":"2018-09-29","value":371125000},{"time":"2019-09-29","value":398698000},{"time":"2020-09-29","value":528682000},{"time":"2021-09-29","value":619531000},{"time":"2022-09-29","value":853895000},{"time":"2023-09-29","value":835531000}],"Stockholders Equity":[{"time":"2014-09-29","value":265298000},{"time":"2015-09-29","value":274938000},{"time":"2016-09-29","value":300029000},{"time":"2017-09-29","value":319144000},{"time":"2018-09-29","value":330280000},{"time":"2019-09-29","value":348978000},{"time":"2020-09-29","value":371500000},{"time":"2021-09-29","value":472517000},{"time":"2022-09-29","value":501513000},{"time":"2023-09-29","value":540488000}],"ROE":[{"time":"2014-09-29","value":0.006600125142292818},{"time":"2015-09-29","value":0.023961765925408638},{"time":"2016-09-29","value":0.0556879501648174},{"time":"2017-09-29","value":0.029347253904193717},{"time":"2018-09-29","value":0.0039451374591255904},{"time":"2019-09-29","value":0.028534750041549897},{"time":"2020-09-29","value":0.02264064602960969},{"time":"2021-09-29","value":0.021937835040855672},{"time":"2022-09-29","value":0.03864904798081007},{"time":"2023-09-29","value":0.04582895457438463}],"ROA":[{"time":"2014-09-29","value":0.017424145920766788},{"time":"2015-09-29","value":0.04367092821946997},{"time":"2016-09-29","value":0.05088259966802115},{"time":"2017-09-29","value":0.027634136661365223},{"time":"2018-09-29","value":0.00758504546985517},{"time":"2019-09-29","value":0.028209321340964842},{"time":"2020-09-29","value":0.021406062623656564},{"time":"2021-09-29","value":0.016993499921714974},{"time":"2022-09-29","value":0.04475960159035947},{"time":"2023-09-29","value":0.059955884341813766}]}
Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States 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 provides embedded system products under the Digi Connect, ConnectCore, and Rabbit brands; and infrastructure management products, comprising of serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it offers Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that provides a secure environment for customers to manage their connected device deployment and network devices; and SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitor facilities or pharmacies by tracking the completion of operating tasks by employees, as well as quality control and incident management for food service, healthcare, and transportation/logistics industries. 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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DCF
Discounted Cash Flow Valuation of Digi International Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $56.58M | $73.55M | $93.57M | $116.4M | $141.7M | $168.4M | $195.6M | $221.7M | $245M | $264.1M | $277.3M | $2.773B |
| DCF | $63.96M | $70.76M | $76.57M | $81M | $83.74M | $84.55M | $83.33M | $80.11M | $75.08M | $68.55M | $685.5M | |
| Value | $1.453B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 13%
Earnings Stability 16%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 3.2% | 8.2% | 5.2% | 0.57% | 3.9% | 3% | 3.4% | 5% | 5.6% | 3.2% |
| ROA | 4.4% | 5.1% | 2.8% | 0.76% | 2.8% | 2.1% | 1.7% | 4.5% | 6% | 5.6% |
| ROE | 2.4% | 5.6% | 2.9% | 0.39% | 2.9% | 2.3% | 2.2% | 3.9% | 4.6% | 2.6% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +3.57%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.82%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +2.98%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.88%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +2.69%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.68%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | 0.00 | 1.94 | 0.87 | 7.42 | 7.07 | 3.06 |
| Debt Equity | - | - | - | - | 0.00 | 0.18 | 0.10 | 0.53 | 0.42 | 0.31 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 12% | 100% | 100% | 100% | 100% | 100% | 12% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.06.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.96.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.12.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 12% | 14% | 17% | 15% | 2.3% |
| Net Income | 5.8% | 80% | 43% | 28% | -16% |
| Stockholders Equity | 8.8% | 10% | 13% | 7.8% | 0.87% |
| FCF | 4.2% | - | -1.2% | -9.4% | -8.6% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +14.27%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.33%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +80.22%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -16.48%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +10.35%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.87%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -8.64%.