Is the business good?
How good a business is DGII?
Digi International Inc. earns 6.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.4%
Return on invested capital · cost of capital 9.0% · 2.6 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Communication Equipment median 4.4% · 12 months to Q2 2026
- Cash conversion
- 2.92×
Cash conversion · 2.49× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +2.6%
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 Q2 2026
- 63%
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 9.1%
- Free cash flow margin
- 27%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $475M
- Free cash flow, trailing twelve months
- $126M
- Net income, trailing twelve months
- $43M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #16 of 21 by Smart Score