Digi International Inc. (DGII) Stock

Digi International Inc. (DGII) is a Technology stock trading at $73.64 (as of 2026-08-20), with a market capitalization of $2.79B and a trailing P/E of 57.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Digi International Inc. provides IoT connectivity and related infrastructure products, services, and solutions, operating through two segments: IoT Products & Services and IoT Solutions. Offerings include cellular routers and modules, console servers, and RF products (including Digi XBee), as well as embedded system and device management solutions such as Digi Remote Manager.

Understand Digi International Inc.: how it makes money

Digi International sells mission-critical IoT connectivity and edge networking equipment, including cellular routers and cellular modules, plus secure remote access console servers, and it earns revenue across IoT Products & Services and IoT Solutions.

Profit durability is tied to converting a large recurring revenue base (Annual Recurring Revenue) into continued subscriber and site demand, while supply constraints can directly cap reported revenue (Revenue Left on the Table Due to Supply Shortages).

Revenue by segment (latest quarter)
IoT Prod & Svcs	$0.1B
IoT Solutions	$0.0B

Business quality (Mixed): A recurring revenue and subscriber-driven profit model for mission-critical IoT, with margin support (64.0% gross margin, 13.1% operating margin), but results can be constrained by supply shortages and growth cadence tied to subscriber additions and sites served.

Valuation: At 61× earnings, DGII trades 91% above the Tech Hardware average (32×). Note: one-time items can distort reported P/E.

Bull case

Recurring revenue scale: Annual Recurring Revenue is 0.18 USD_B, and Annual Recurring Revenue as Percent of Annualized Quarterly Revenues is 29.0%.
Customer footprint continues: Sites Served is 280000, and there is a consecutive record of 10 revenue quarters.
Strong product gross profitability: Gross margin is 64.0% and operating margin is 13.1% for the latest quarter.

Bear case

Supply shortages can cap sales: Revenue Left on the Table Due to Supply Shortages is 0.01 USD_B, indicating reported revenue can be constrained.
Growth may concentrate in solutions: Subscriber additions for Internet of Things Solutions are 190000 in the period, which can create uneven momentum if that area slows.
Working-capital exposure: Net Inventory is 0.05 USD_B, and investors may need to watch inventory levels as demand and supply conditions change.

Valuation — source: SEC EDGAR (first-party)
Price	$73.64
Market Cap	$2.79B
P/E Ratio	57.3
EV / EBITDA	27.2
Price / Book	4.08
Price / Sales	5.52
FCF Yield	4.9%
DCF Value (model)	$6.27
DCF Upside vs Price	-91.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$430.22M
Net Margin	9.5%
Revenue Growth (YoY)	29.0%
EPS Growth (YoY)	50.0%
FCF Growth (YoY)	41.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	6.87 (safe)
Piotroski F-Score	5/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	57.3
Sector P/E (Technology)	33.9
Industry P/E (Computers)	32.1
vs Sector	69.0%
vs Industry	78.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($283.24M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Computers
CEO	Ronald E. Konezny
Employees	805
Country	US
IPO Date	1989-10-06

Related Companies (Business model: Industrials / Capital Goods (Heavy Machinery + Diversified Industrials); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.