Digi International (DGII) Stock Analysis & Winston Score

Digi International Inc. provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States and internationally. The company operates in two segments, IoT Products & Services and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+7.1% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

2.6%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$32M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Digi International grew revenue 25% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

64.0%

Premium pricing power — 64.0% gross margin

Operating Margin

13.1%

Healthy — 13.1% operating margin

ROCE

2.1%

Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+3.8%

Slow sales growth (3.8% YoY)

EPS YoY

+182.5%

Earnings growing fast (182.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

286%

Turns 286% of profit into real cash

FCF Margin

25.7%

Converts sales into free cash efficiently (25.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.23

Conservative — low debt load (0.23)

Interest Cover

33.24x

Comfortably covers interest (33.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

58.3x

no trend

Expensive — P/E 58.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+30.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (58.3 → 27.6)

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Dividends

Not applicable for this business.

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