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 32.44%
3
With a growth in Net Profit of 17.33%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 113.59 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 4.13 times
- NET SALES(Q) Highest at USD 122.46 MM
4
With ROCE of 8.35%, it has a very expensive valuation with a 3.07 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 64.11%, its profits have risen by 10.7% ; the PEG ratio of the company is 5.6
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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.
64.11%
2.79
40.41%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.12%
EBIT Growth (5y)
32.44%
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
49
Industry P/E
Price to Book Value
3.42
EV to EBIT
36.83
EV to EBITDA
23.47
EV to Capital Employed
3.07
EV to Sales
5.18
PEG Ratio
5.59
Dividend Yield
NA
ROCE (Latest)
8.35%
ROE (Latest)
7.01%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 113.59 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 4.13 times
NET SALES(Q)
Highest at USD 122.46 MM
OPERATING PROFIT(Q)
Highest at USD 27.78 MM
NET PROFIT(Q)
Highest at USD 12.55 MM
RAW MATERIAL COST(Y)
Fallen by -0.28% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 22.69 %
PRE-TAX PROFIT(Q)
Highest at USD 15.02 MM
EPS(Q)
Highest at USD 0.31
-4What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 52.83 MM
INTEREST(Q)
Highest at USD 2.3 MM
Here's what is working for Digi International, Inc.
Operating Cash Flow
Highest at USD 113.59 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)
Net Sales
Highest at USD 122.46 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 27.78 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Net Profit
Highest at USD 12.55 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 4.13 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit Margin
Highest at 22.69 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 15.02 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 0.31
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -0.28% (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
Depreciation
Highest at USD 10.46 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Digi International, Inc.
Interest
At USD 2.3 MM has Grown at 31.08%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 2.3 MM
in the last five periods and Increased by 31.08% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 52.83 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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