ScoreWhy is Digi International, Inc. ?
1
Poor Management Efficiency with a low ROCE of 5.88%
- The company has been able to generate a Return on Capital Employed (avg) of 5.88% signifying low profitability per unit of total capital (equity and debt)
2
Healthy long term growth as Operating profit has grown by an annual rate 41.08%
3
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 106.4 MM
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- ROCE(HY) Highest at 7.21%
4
With ROCE of 8.43%, it has a fair valuation with a 2.35 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 24.38%, its profits have risen by 43% ; the PEG ratio of the company is 0.9
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 24.38% in the last 1 year, much higher than market (S&P 500) returns of 12.33%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Digi International, Inc. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Digi International, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Digi International, Inc.
31.5%
1.96
43.99%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.20%
EBIT Growth (5y)
41.08%
EBIT to Interest (avg)
3.95
Debt to EBITDA (avg)
1.93
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.60
Tax Ratio
6.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
5.88%
ROE (avg)
4.52%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
2.45
EV to EBIT
27.88
EV to EBITDA
17.30
EV to Capital Employed
2.35
EV to Sales
3.66
PEG Ratio
0.87
Dividend Yield
NA
ROCE (Latest)
8.43%
ROE (Latest)
6.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 106.4 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
ROCE(HY)
Highest at 7.21%
DEBT-EQUITY RATIO
(HY)
Lowest at 5.19 %
RAW MATERIAL COST(Y)
Fallen by -9.82% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.86 times
NET SALES(Q)
Highest at USD 107.51 MM
OPERATING PROFIT(Q)
Highest at USD 23.9 MM
OPERATING PROFIT MARGIN(Q)
Highest at 22.23 %
PRE-TAX PROFIT(Q)
Highest at USD 14.63 MM
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 46.4 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.06 times
Here's what is working for Digi International, Inc.
Operating Cash Flow
Highest at USD 106.4 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 5.19 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at USD 107.51 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 23.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 22.23 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 14.63 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Inventory Turnover Ratio
Highest at 3.86 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -9.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Digi International, Inc.
Cash and Eqv
Lowest at USD 46.4 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 6.06 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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