DGIIDigi International Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.5×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DGII?
Digi International Inc. earns 7.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.7 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Communication Equipment median 5.0% · 12 months to Q3 2026
- Cash conversion
- 2.52×
Cash conversion · 2.17× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +3.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 4.0% |
| FY2021 | 3.4% |
| FY2022 | 9.8% |
| FY2023 | 11% |
| FY2024 | 11% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q3 2026
- 64%
- Operating margin12 months to Q3 2026
- 14%
- Net margin12 months to Q3 2026
- 9.6%
- Free cash flow margin
- 27%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $506M
- Free cash flow, trailing twelve months
- $136M
- Net income, trailing twelve months
- $49M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
Ranks #5 of 20 by RyuScore