Latest Ratios: P/E Ratio 69.7x · EV/EBITDA 33.2x · 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 | $3.0B | $1.5B | $1.1B | $1.2B | $1.5B | $616M | $487M | $296M | $314M | $209M | $224M |
| P/E Ratio → | 69.72 | 33.76 | 45.13 | 40.30 | 64.02 | 67.81 | 55.82 | 38.91 | 285.56 | 30.29 | 17.81 |
| P/S Ratio | 6.60 | 3.20 | 2.40 | 2.24 | 3.21 | 2.27 | 1.65 | 1.53 | 1.63 | 1.58 | 1.48 |
| P/B Ratio | 4.47 | 2.16 | 1.75 | 1.84 | 2.48 | 1.49 | 1.24 | 1.11 | 1.13 | 0.90 | 1.00 |
| P/FCF | 26.95 | 13.06 | 12.59 | 30.72 | 34.79 | 12.66 | 13.75 | 19.81 | — | 409.19 | 12.31 |
| P/OCF | 26.30 | 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 | 33.20 | 16.99 | 13.90 | 14.09 | 19.36 | 19.62 | 15.92 | 29.40 | 20.78 | 10.81 | 10.32 |
| EV / EBIT | 53.24 | 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 | 1.4% | 3.0% | 2.2% | 2.5% | 1.6% | 1.5% | 1.8% | 2.6% | 0.4% | 3.3% | 5.6% |
| FCF Yield | 3.7% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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 69.7x. The historical average is 39.1x. This places it at the 96th percentile of its historical range.
Digi International Inc.'s current EV/EBITDA is 33.2x. 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 69.7x. This is at the 96th 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.
Key Metrics
Top Statement Risk
Revenue growth sustainability
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
Gross margin expanded from 57.9% in 2024Q2 to 64.8% in 2026Q3, as reported in financial statements, indicating a favorable shift toward higher-margin software and services, which may be sustainable if the Solutions segment continues to scale.
The 640 basis point gross margin improvement over ten quarters suggests the company is successfully executing its Digi-as-a-Service strategy, trading upfront hardware revenue for recurring, higher-margin subscriptions. Operating margin reached 16.5% in 2026Q3, the highest in the series, implying that fixed costs are being spread over a larger revenue base. However, the sustainability of this margin expansion depends on the continued growth of the SmartSense platform and the sunsetting of legacy low-margin hardware lines.
ROIC Lags Margin Gains
Despite strong margins, ROIC remained below 2.2% in 2026Q3, as per reported figures, indicating that capital efficiency has not kept pace with profitability improvements, likely due to heavy acquisition-related intangibles.
ROIC has hovered between 0.9% and 2.2% over the past ten quarters, even as operating margins doubled. This divergence suggests that the company's invested capital base has grown faster than operating income, largely due to acquisitions that added goodwill and intangibles. The low ROIC may indicate that recent M&A has not yet generated returns above the cost of capital, warranting close monitoring of integration execution and organic growth.
Working Capital Efficiency Improves
Cash conversion cycle improved from 147 days in 2024Q2 to 54 days in 2026Q3, based on reported figures, driven by faster collections and lower inventory days, indicating enhanced working capital management.
DSO fell from 56 to 42 days, while DIO dropped from 130 to 84 days, reflecting better inventory control and receivables collection. DPO increased from 39 to 72 days, suggesting the company is taking longer to pay suppliers, which may indicate improved bargaining power. The 93-day reduction in CCC has likely contributed to the robust cash flow generation, but investors should monitor whether this is sustainable or a one-time working capital release.
Deleveraging Enhances Financial Flexibility
Debt-to-equity fell from 0.34 in 2024Q2 to 0.17 in 2026Q3, while interest coverage improved from 2.2x to 14.2x, as reported in financial statements, indicating a strengthening balance sheet.
Total debt declined to $118.4M in 2026Q3 from $179.9M in 2025Q4, reducing leverage and interest expense burden. The improved interest coverage suggests that debt service is becoming more comfortable, providing headroom for future acquisitions. However, the company's acquisition strategy may lead to increased leverage in the future, so investors should monitor the pace of capital deployment.
Liquidity Buffer Thins but Adequate
Current ratio declined to 1.13 in 2026Q3 from 1.43 a year earlier, with quick ratio at 0.78, as per the latest balance sheet, indicating a thinner but still sufficient liquidity cushion.
The decline in current ratio is driven by increased short-term debt and lower cash balances, partly due to acquisition spending. The quick ratio below 1.0 suggests reliance on inventory to meet short-term obligations, which could be a concern if inventory becomes obsolete. However, the company's robust operating cash flow and minimal debt provide alternative liquidity sources, mitigating near-term stress.
P/E Misleads on Earnings Power
The trailing P/E of 78.9 overstates valuation because it includes one-time charges and stock-based compensation, as per reported figures; forward P/E of 32.3 better reflects normalized earnings.
The trailing P/E is distorted by non-recurring items and the low TTM net income relative to the recent quarterly beat. Investors should focus on forward P/E and EV/EBITDA, which adjust for these anomalies. Additionally, the company's high gross margin and recurring revenue suggest that a software-like multiple may be more appropriate than a hardware multiple, but this depends on the durability of ARR growth.