Digi International Inc. (DGII)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-09
$68.91-1.43%
Close 2026-09-09 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-09
Intact: The reason to own it still holds.
Digi International grows revenue about 25% year over year. Profit rises with operating income up from $13M to $17M in one year. New 5G products and a business pivot support growth. The company trades cheaper than peers with solid cash flow.
Revenue growth could slow below 15% if new products fail to gain traction. Profit margins may shrink if costs rise. The stock trades at a premium to some peers, risking multiple compression.
The stock price is about 3% below our fair value near $73. Analysts expect about 15% revenue growth, which is lower than recent growth but reflects some moderation. Our view aligns with consensus on growth but sees value in the cheaper valuation.
Breaks if: Operating income falls below $17M in FY26 Q2
Breaks if: New 5G products fail to contribute meaningfully to revenue growth
YoY revenue growth falls below 14.7% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
DGII represents a durable compounder with a medium confidence level in its long-term thesis. The company is focused on achieving significant growth in annual recurring revenue (ARR) and adjusted EBITDA while managing its debt.
The market currently prices DGII as justified, with a low expectations gap compared to peers. It is seen as cheap relative to its industry, indicating that investors may have moderate expectations for future performance.
Management is on track with its priorities, showing strong growth in ARR and revenue. However, there is a moderate risk of missing earnings expectations, which could impact sentiment.
The thesis hinges on whether DGII can maintain its growth trajectory and manage its balance sheet effectively. Additionally, external factors like Federal Reserve rate cuts and performance of sector leaders will influence the company's outlook.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports revenue growth through organic and acquisition expansion. This positive performance reinforces the company's outlook and growth strategy. There are no new threats identified that could weaken this view.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on increasing revenue growth through strategic initiatives.
Overall, DGII is positioned well for the next few years, but it faces risks that could affect its credibility and growth. Not investment advice.