Fundamental analysis DGII (Digi International Inc)

Updated on 08/04/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Digi International stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 28.2×.

This is the setup we look for: Digi International passes a large majority of our quality criteria while trading at a low free cash flow multiple. That is exactly the "quality company at the right price" profile, the one worth a closer look.

Sector: Communication Equipment. Listing: US. Current price: 81.70 USD.

Lubin scoring methodology

Digi International Inc (DGII)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

Digi International's accounts are public: you can check every figure in its official 10-K filings with the SEC (EDGAR).

The 10 quantitative criteria analyzed

1. Profitable: net margin > 5%
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Communication Equipment stocks we have scored, Digi International trades at 28.2× its free cash flow, versus a median of 29.8× for that basket. On price alone, Digi International is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Digi International a quality stock?

Digi International gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Digi International's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Digi International's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Digi International stock is 28.2×. At Lubin Investment, valuation is judged separately from quality.

Where to see Digi International's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/DGII?lng=en.

Other stocks in the Communication Equipment sector

• Ubiquiti (UI), score 9/10, P/FCF 48.0×
• Motorola Solutions (MSI), score 9/10, P/FCF 36.1×
• Frequentis (FQT.VI), score 9/10, P/FCF 29.8×
• Telefonaktiebolaget LM Ericsson (publ) (ERIC-B.ST), score 9/10, P/FCF 11.1×

Go further

👉 See the full interactive analysis of DGII

Other resources : All stocks in the Communication Equipment sector.