Digi International Inc. (DGII) AI Stock Analysis

Digi International Inc. specializes in Internet of Things (IoT) products, services, and solutions for business and mission-critical applications. Headquartered in Hopkins, Minnesota, the company operates across two segments: IoT Products & Services and IoT Solutions. Its IoT Products & Services portfolio features cellular routers, cellular modules, console servers for data centers and edge locations, radio frequency products such as Digi XBee modules, and embedded system products including Digi Connect, ConnectCore, and Rabbit. The IoT Solutions segment provides infrastructure management tools like serial servers along with cloud-based management platforms including Digi Remote Manager and Lighthouse.

Between FY2021 and FY2025, revenue increased from $308.6M to $430.2M, reflecting a 5-year compound annual growth rate of 9.0%. Gross margin expanded from 54.0% in FY2021 to 62.9% in FY2025, while operating margin grew from 3.4% to 13.1%. Net income reached $40.8M in FY2025, up from $10.4M in FY2021, with diluted EPS rising from $1.09 to $2.10. While revenue fell 4.7% in FY2024 before growing 1.5% in FY2025, recent momentum improved. In the latest quarter ended June 30, 2026, quarterly revenue grew 29.0% year-over-year, and quarterly earnings grew 48.1%. Trailing twelve month revenue stood at $506.2M.

As of June 30, 2026, Digi International held $28.0M in cash and short-term investments alongside total debt of $118.4M, resulting in net debt of $90.4M. The company had a current ratio of 1.13 and a debt-to-equity ratio of 0.17 against shareholders' equity of $685.2M and total assets of $964.4M. In FY2025, operating cash flow was $108.0M and free cash flow was $105.3M, supported by capital expenditures of $2.6M. Over the trailing five years, the company's share count increased by 8.8%.

Digi International trades at a trailing P/E of 55.5x and a forward P/E of 23.9x, compared to the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. Its enterprise value to EBITDA sits at 25.2x, above the peer median of 16.6x, while its price-to-sales ratio is 5.2x versus the peer median of 2.8x. The company's PEG ratio is 0.83. Over the past year, the stock returned 83.0%, outperforming the S&P 500 (SPY) return of 16.8%, and over five years returned 228.2% compared to 83.0% for the index.

Wall Street coverage includes 4 Strong Buy ratings, 0 Buy ratings, 1 Hold rating, and 0 Sell or Strong Sell ratings. The mean price target is $85.40, representing 22.2% upside compared to the last close of $69.90 on October 16, 2026. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $532.1M and EPS of $2.69, which represents 28.2% EPS growth. Digi International has beaten EPS estimates in each of the last 4 quarters, with the next earnings release scheduled for November 11, 2026.

This page is an AI-written research summary of Digi International Inc. (DGII). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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