DGII
TechnologyDigi International Inc. · Communication Equipment · $2B
What is Digi International Inc.?
Digi International is a mid-cap technology company specializing in Internet of Things connectivity products and managed solutions. Headquartered in Hopkins, Minnesota, it serves customers across the United States and internationally.
Digi International generates revenue through two segments: IoT Products & Services and IoT Solutions. The products segment sells cellular routers, modules, console servers, and embedded systems. The solutions segment delivers recurring cloud-based device management through Digi Remote Manager, along with wireless monitoring services for temperature-sensitive environments under the SmartSense by Digi brand.
Digi International was founded in 1989 and is headquartered in Hopkins, Minnesota.
- Cellular routers and modules for mission-critical wireless connectivity
- Digi XBee radio frequency products and embedded wireless modules
- Digi Remote Manager cloud-based device management platform
- SmartSense by Digi wireless monitoring for food safety and facilities
Is DGII a Good Stock to Buy?
UQS Score rates DGII as Below Average overall.
Among the five pillars, Valuation stands out as the relative bright spot, suggesting the market may not be pricing in excessive optimism. Growth sits at a Neutral level, meaning the company is neither accelerating meaningfully nor contracting sharply.
Both the Quality and Moat pillars register as Weak, indicating limited competitive differentiation and below-average financial returns relative to sector peers.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does DGII pay dividends?
No — Digi International Inc. does not currently pay a dividend.
Digi International does not currently pay a dividend. Companies at this stage of IoT market development typically reinvest available capital into product development, platform expansion, and customer acquisition rather than returning cash to shareholders through distributions.
When does DGII report earnings?
Digi International reports earnings on a quarterly cadence, typical for US-listed equities.
The company's Growth pillar sits at a Neutral level, reflecting a business that is progressing but has not yet demonstrated the kind of consistent acceleration that would lift its overall UQS rating. Recurring revenue from cloud-managed services represents a key area to watch across reporting periods.
For the most recent quarter's results, visit Digi International's investor relations page directly.
DGII Price History
+194.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Digi International Inc.?
Based on Digi International Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
DGII Long-term Outlook
With Growth rated Neutral and Risk also at Neutral, Digi International's fundamental trajectory appears stable but unexceptional. The shift toward recurring, cloud-based revenue through Digi Remote Manager could improve earnings quality over time, though Weak Quality and Moat scores suggest the company has not yet built the durable advantages needed to sustain above-average returns.
Growth drivers
- Expansion of recurring revenue through the Digi Remote Manager platform
- Growing enterprise and industrial demand for managed IoT connectivity
- Cross-selling SmartSense monitoring solutions into existing customer accounts
Key risks
- Weak Moat rating signals limited pricing power against larger connectivity competitors
- Weak Quality pillar points to below-average financial returns that may constrain reinvestment capacity
- Broader IoT market commoditization could pressure hardware margins over time
DGII vs Peers
Digi International competes in the broader connectivity and networking technology space alongside several mid-market peers.
Extreme Networks focuses on cloud-managed enterprise networking infrastructure, competing with Digi primarily in managed connectivity and edge networking solutions.
Knowles specializes in advanced audio and precision devices, overlapping with Digi in the embedded component and IoT hardware segment.
ADTRAN provides broadband networking equipment and solutions, competing with Digi in the edge connectivity and infrastructure management space.
Frequently Asked Questions
What does Digi International do?
Digi International develops IoT connectivity hardware and cloud-managed services. Its products include cellular routers, embedded modules, and console servers. Its solutions arm delivers recurring revenue through the Digi Remote Manager platform and SmartSense wireless monitoring for food safety and facility management.
Does DGII pay dividends?
No, Digi International does not currently pay a dividend. The company appears to prioritize reinvesting capital into its IoT product portfolio and cloud platform rather than distributing cash to shareholders.
When does DGII report earnings?
Digi International follows a standard quarterly earnings cadence. For the exact schedule and most recent results, check the investor relations section of the company's official website.
Is DGII a good stock to buy?
UQS Score rates DGII as Below Average, driven by Weak Quality and Moat scores. Valuation is rated Good, which may interest value-oriented investors, but the overall profile suggests meaningful fundamental challenges remain. The full pillar breakdown is available to UQS Pro members.
Is DGII overvalued?
The UQS Valuation pillar for DGII is rated Good, suggesting the stock is not trading at a significant premium relative to its fundamentals. However, Valuation alone does not determine investment merit — Quality and Moat weaknesses are important context.
How does DGII compare to its competitors?
Compared to peers like Extreme Networks, Knowles Corporation, and ADTRAN, Digi International occupies a narrower IoT-focused niche. Its Weak Moat rating suggests it has not yet established the durable competitive advantages that would clearly differentiate it from these broader connectivity and networking rivals.
What is DGII's market cap bracket?
Digi International is classified as a mid-cap company, placing it in a tier that typically carries more growth potential than large-caps but also more volatility and execution risk than established mega-cap technology firms.
Who founded Digi International?
Digi International was founded in 1989. For detailed founding history and leadership background, the company's official about page and public filings are the most reliable sources.
Is DGII a long-term quality indicator?
As a long-term quality indicator, DGII's Below Average UQS Score — anchored by Weak Quality and Moat pillars — suggests the business has not yet demonstrated the durable financial strength associated with high-quality long-term holdings. The Neutral Growth and Risk scores indicate stability without clear upward momentum in fundamentals.
What is the main competitive advantage of Digi International?
Digi International's primary differentiation lies in its end-to-end IoT ecosystem — combining hardware like cellular routers and embedded modules with cloud-managed services through Digi Remote Manager. However, the UQS Moat pillar rates this advantage as Weak, suggesting it has not yet translated into durable pricing power or above-average returns.
Unlock Full DGII Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View the exact UQS Score and all five pillar scores for DGII
- ✓Access full financial metrics and quality indicators
- ✓Compare DGII side-by-side with Extreme Networks, Knowles, and ADTRAN
- ✓See how DGII ranks within the broader Technology sector
- ✓Get the complete analyst view available exclusively to Pro members
Pro Analysis
DGII — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 42.9 | 33.0 | 28.0 | 51.7 | 55.7 | 59.8 | -0.1 |
| May 22, 2026 | 43.0 | 33.0 | 28.0 | 51.7 | 55.7 | 60.6 | -0.1 |
| May 21, 2026 | 43.1 | 33.0 | 28.0 | 51.7 | 55.7 | 61.2 | -0.1 |
| May 20, 2026 | 43.2 | 33.0 | 28.0 | 51.7 | 55.7 | 62.0 | 0.0 |
| May 19, 2026 | 43.2 | 33.0 | 28.0 | 51.7 | 55.7 | 61.6 | +0.2 |
| May 16, 2026 | 43.0 | 33.0 | 28.0 | 50.9 | 55.7 | 61.7 | +0.1 |
| May 15, 2026 | 42.9 | 33.0 | 28.0 | 50.9 | 55.7 | 61.0 | 0.0 |
| May 14, 2026 | 42.9 | 33.0 | 28.0 | 50.9 | 55.7 | 60.6 | -0.2 |
| May 13, 2026 | 43.1 | 33.0 | 28.0 | 50.9 | 55.7 | 62.0 | +0.1 |
| May 12, 2026 | 43.0 | 33.0 | 28.0 | 50.9 | 55.7 | 61.5 | +0.2 |
DGII — Pillar Breakdown
Quality
— 33.0/100 (25%)Digi International Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 51.7/100 (20%)Digi International Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 55.7/100 (15%)Digi International Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 60.3/100 (15%)Digi International Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 28/100 (25%)Digi International Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DGII.
Score Composition
Financial Data
More Stock Analysis
How is the DGII UQS Score Calculated?
The UQS (Unified Quality Score) for Digi International Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Digi International Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Digi International Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.