Latest Ratios: P/E Ratio 67.8x · EV/EBITDA 32.3x · ROE 6.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.8B | $1.4B | $1.0B | $995M | $1.2B | $702M | $462M | $389M | $372M | $287M | $300M |
| Enterprise Value | $2.9B | $1.5B | $1.1B | $1.2B | $1.5B | $616M | $487M | $296M | $314M | $209M | $224M |
| P/E Ratio → | 67.80 | 33.76 | 45.13 | 40.30 | 64.02 | 67.81 | 55.82 | 38.91 | 285.56 | 30.29 | 17.81 |
| P/S Ratio | 6.42 | 3.20 | 2.40 | 2.24 | 3.21 | 2.27 | 1.65 | 1.53 | 1.63 | 1.58 | 1.48 |
| P/B Ratio | 4.34 | 2.16 | 1.75 | 1.84 | 2.48 | 1.49 | 1.24 | 1.11 | 1.13 | 0.90 | 1.00 |
| P/FCF | 26.21 | 13.06 | 12.59 | 30.72 | 34.79 | 12.66 | 13.75 | 19.81 | — | 409.19 | 12.31 |
| P/OCF | 25.57 | 12.75 | 12.25 | 27.09 | 32.97 | 12.16 | 13.39 | 13.43 | — | 116.06 | 11.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.57 | 2.66 | 2.66 | 3.78 | 2.00 | 1.75 | 1.16 | 1.37 | 1.15 | 1.10 |
| EV / EBITDA | 32.33 | 16.99 | 13.90 | 14.09 | 19.36 | 19.62 | 15.92 | 29.40 | 20.78 | 10.81 | 10.32 |
| EV / EBIT | 51.85 | 30.62 | 29.47 | 23.62 | 38.30 | 59.35 | 44.08 | 26.33 | 95.85 | 22.02 | 13.20 |
| EV / FCF | — | 14.56 | 13.95 | 36.56 | 41.03 | 11.11 | 14.51 | 15.09 | — | 297.76 | 9.20 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.9% | 62.9% | 58.9% | 56.7% | 55.7% | 54.0% | 51.6% | 46.8% | 47.7% | 48.0% | 49.1% |
| Operating Margin | 13.1% | 13.1% | 11.3% | 11.3% | 9.8% | 3.4% | 4.1% | -1.3% | 1.0% | 7.6% | 8.4% |
| Net Profit Margin | 9.5% | 9.5% | 5.3% | 5.6% | 5.0% | 3.4% | 3.0% | 3.9% | 0.6% | 5.2% | 8.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.7% | 6.7% | 4.0% | 4.8% | 4.0% | 2.5% | 2.3% | 2.9% | 0.4% | 3.0% | 5.8% |
| ROA | 4.7% | 4.7% | 2.7% | 2.9% | 2.6% | 1.8% | 1.8% | 2.6% | 0.4% | 2.7% | 5.2% |
| ROIC | 5.7% | 5.7% | 5.1% | 5.2% | 5.2% | 2.0% | 2.6% | -0.9% | 0.7% | 4.5% | 5.6% |
| ROCE | 7.3% | 7.3% | 6.5% | 6.6% | 5.8% | 2.0% | 2.8% | -1.0% | 0.7% | 4.3% | 5.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.24 | 0.41 | 0.51 | 0.14 | 0.21 | — | — | — | — |
| Debt / EBITDA | 1.99 | 1.99 | 1.69 | 2.63 | 3.41 | 2.13 | 2.60 | — | — | — | — |
| Net Debt / Equity | — | 0.25 | 0.19 | 0.35 | 0.45 | -0.18 | 0.07 | -0.27 | -0.18 | -0.25 | -0.25 |
| Net Debt / EBITDA | 1.75 | 1.75 | 1.35 | 2.25 | 2.95 | -2.73 | 0.83 | -9.21 | -3.84 | -4.05 | -3.49 |
| Debt / FCF | — | 1.50 | 1.36 | 5.84 | 6.24 | -1.54 | 0.76 | -4.73 | — | -111.43 | -3.11 |
| Interest Coverage | 7.93 | 7.93 | 2.48 | 1.99 | 1.94 | 7.44 | 3.08 | 110.26 | 131.00 | 197.73 | 58.35 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.21 | 1.21 | 1.73 | 1.93 | 1.72 | 4.18 | 2.78 | 4.33 | 4.51 | 9.70 | 8.22 |
| Quick Ratio | 0.85 | 0.85 | 1.13 | 1.07 | 0.96 | 3.44 | 1.94 | 3.44 | 3.32 | 8.02 | 7.11 |
| Cash Ratio | 0.20 | 0.20 | 0.31 | 0.37 | 0.36 | 2.59 | 0.88 | 2.09 | 1.79 | 6.13 | 5.63 |
| Asset Turnover | — | 0.47 | 0.52 | 0.53 | 0.45 | 0.50 | 0.53 | 0.64 | 0.62 | 0.53 | 0.60 |
| Inventory Turnover | 4.10 | 4.10 | 3.26 | 2.59 | 2.35 | 3.23 | 2.62 | 3.40 | 2.87 | 3.12 | 3.93 |
| Days Sales Outstanding | — | 53.83 | 59.94 | 45.95 | 47.43 | 51.73 | 77.41 | 81.01 | 79.63 | 62.00 | 56.96 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 3.0% | 2.2% | 2.5% | 1.6% | 1.5% | 1.8% | 2.6% | 0.4% | 3.3% | 5.6% |
| FCF Yield | 3.8% | 7.7% | 7.9% | 3.3% | 2.9% | 7.9% | 7.3% | 5.0% | — | 0.2% | 8.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.3% | 0.2% | 0.3% | 0.2% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.3% | 0.2% | 0.3% | 0.2% |
| Shares Outstanding | — | $38M | $37M | $37M | $36M | $33M | $30M | $29M | $28M | $27M | $26M |
Industrial cyclicality and inventory
According to current market data, DGII trades at a forward P/E of 28.82, which suggests investors are pricing the firm as a mature hardware entity rather than a high-growth software provider, despite the recent revenue acceleration observed in the most recent quarterly financial filings.
The valuation gap between DGII and pure-play SaaS peers indicates that the market remains skeptical of the durability of the company's recurring revenue transition. Investors should monitor whether the current P/S of 6.18 compresses as the SmartSense platform scales, or if the market continues to apply a hardware-centric discount due to the cyclical nature of the industrial IoT segment.
Based on reported financial statements, DGII's ROIC has remained relatively stagnant, hovering near 1.6% in 2026Q2, which reflects the significant drag created by the accumulation of intangible assets and goodwill from recent inorganic growth initiatives compared to the company's historical performance.
The low ROIC suggests that while the company is successfully expanding its footprint, it has yet to achieve the operational leverage required to generate superior returns on its invested capital. This warrants further investigation into whether the integration of acquired entities is creating genuine value or merely masking the underlying stagnation of legacy hardware product lines.
As reported in recent quarterly data, the cash conversion cycle has fluctuated significantly, reaching 53 days in 2026Q2, which appears to be driven by elevated inventory levels in the cellular router segment compared to the more efficient turnover seen in previous fiscal periods.
The increase in days inventory outstanding suggests that the company may be holding excess safety stock, potentially exposing it to obsolescence risks as the industry shifts toward 5G architectures. Investors should watch for a normalization of the CCC as a key indicator of whether management can effectively balance supply chain resilience with operational efficiency.
According to the latest balance sheet, the current ratio has compressed to 1.11 in 2026Q2 from a peak of 2.35 in 2024Q1, reflecting a deliberate strategic shift toward deploying cash reserves for acquisitions rather than maintaining a high-liquidity buffer for potential operational shocks.
While the current liquidity position remains adequate, the downward trend suggests that the company has less room for error should industrial demand soften unexpectedly. This shift warrants monitoring, as the company's ability to navigate future cyclical downturns may be more dependent on operating cash flow than on the cash reserves previously held on the balance sheet.
The P/E ratio is frequently misapplied to DGII, as it obscures the significant non-cash charges and amortization of intangibles resulting from the company's aggressive acquisition strategy, which may lead analysts to underestimate the firm's true cash-generative capacity and underlying earnings quality.
Investors should instead focus on FCF margins and ARR growth, which better capture the value of the recurring service model that management is actively building. Relying solely on P/E multiples risks mispricing the company by failing to account for the transition from transactional hardware sales to high-margin, long-term software subscriptions.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DGII stock.
Digi International Inc.'s current P/E ratio is 67.8x. The historical average is 39.1x. This places it at the 92th percentile of its historical range.
Digi International Inc.'s current EV/EBITDA is 32.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Digi International Inc.'s return on equity (ROE) is 6.7%. The historical average is 1.7%.
Based on historical data, Digi International Inc. is trading at a P/E of 67.8x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Digi International Inc. has 62.9% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
Digi International Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.