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Upturn AI SWOT - About
DGII 
Digi International Inc (DGII)
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Upturn Advisory Summary
04/01/2025: DGII (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -18.46% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.02B USD | Price to earnings Ratio 28.88 | 1Y Target Price 38.08 |
Price to earnings Ratio 28.88 | 1Y Target Price 38.08 | ||
Volume (30-day avg) 216686 | Beta 1.02 | 52 Weeks Range 20.17 - 37.06 | Updated Date 04/1/2025 |
52 Weeks Range 20.17 - 37.06 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.96 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.45% | Operating Margin (TTM) 12.86% |
Management Effectiveness
Return on Assets (TTM) 3.79% | Return on Equity (TTM) 6.29% |
Valuation
Trailing PE 28.88 | Forward PE 15.65 | Enterprise Value 1105499546 | Price to Sales(TTM) 2.42 |
Enterprise Value 1105499546 | Price to Sales(TTM) 2.42 | ||
Enterprise Value to Revenue 2.62 | Enterprise Value to EBITDA 13.31 | Shares Outstanding 36899200 | Shares Floating 36016192 |
Shares Outstanding 36899200 | Shares Floating 36016192 | ||
Percent Insiders 2.36 | Percent Institutions 101.62 |
Analyst Ratings
Rating 4 | Target Price 37.1 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Digi International Inc
Company Overview
History and Background
Digi International Inc. was founded in 1985. Initially focused on connectivity solutions, Digi has evolved into a provider of mission-critical machine-to-machine (M2M) and Internet of Things (IoT) connectivity products and services. Significant milestones include strategic acquisitions and expansion into new markets.
Core Business Areas
- IoT Products and Solutions: Offers a range of cellular routers, embedded system-on-modules, single-board computers, RF solutions, and network devices designed for industrial, commercial, and enterprise applications.
- IoT Services: Provides managed services, including device management, security, and connectivity solutions, supporting customers in deploying and maintaining IoT networks.
Leadership and Structure
The leadership team consists of Ron Konezny (President and CEO) and Jamie Loch (CFO). The company operates with a functional organizational structure, with departments dedicated to sales, marketing, engineering, and operations.
Top Products and Market Share
Key Offerings
- ConnectCore: ConnectCore System-on-Modules (SOMs) offer secure and reliable connectivity for embedded devices. Competitors: Toradex, NXP Semiconductors. Market share data is fragmented across various sub-segments; Digi has a significant position in certain industrial segments.
- TransPort Routers: TransPort cellular routers provide secure and reliable connectivity for remote devices and networks. Competitors: Cisco, Sierra Wireless, Cradlepoint. Market share varies by region and application; Digi maintains a solid position in industrial automation and transportation sectors.
- RealPort: RealPort is a COM port redirector that allows legacy serial devices to connect to modern TCP/IP networks. Competitors: Moxa, Perle Systems. Digi holds a prominent position in the COM port connectivity market.
Market Dynamics
Industry Overview
The M2M and IoT connectivity market is experiencing substantial growth, driven by increasing adoption across various industries, including industrial automation, transportation, healthcare, and retail. Key trends include the rise of 5G, edge computing, and cybersecurity concerns.
Positioning
Digi International Inc. is positioned as a provider of reliable and secure connectivity solutions for mission-critical applications. Its competitive advantages include a strong focus on industrial applications, a broad product portfolio, and a reputation for quality and reliability.
Total Addressable Market (TAM)
The global IoT market is estimated to be worth hundreds of billions of dollars. Digi's portion of this TAM is approximately $400 million. Digi is well positioned in specific verticals, like transit and industrial automation.
Upturn SWOT Analysis
Strengths
- Strong brand reputation for reliability and quality
- Broad product portfolio addressing diverse connectivity needs
- Focus on industrial and mission-critical applications
- Established distribution network and partnerships
Weaknesses
- Limited consumer market presence
- Dependence on specific industries
- Smaller scale compared to larger competitors
- Potential vulnerability to component shortages
Opportunities
- Expansion into new geographic markets
- Development of new solutions for emerging IoT applications
- Strategic acquisitions to broaden product offerings
- Leveraging 5G technology to enhance connectivity solutions
Threats
- Intense competition from larger players
- Rapid technological advancements
- Economic downturns impacting industrial spending
- Cybersecurity threats targeting IoT devices
Competitors and Market Share
Key Competitors
- SWIR
- SEM
- QCOM
- XLNX
Competitive Landscape
Digi International Inc. competes with a mix of larger and smaller players in the M2M and IoT connectivity market. Digi's advantages include its focus on industrial applications, its broad product portfolio, and its reputation for quality and reliability. Its disadvantages include its smaller scale compared to larger competitors.
Major Acquisitions
Opengear
- Year: 2019
- Acquisition Price (USD millions): 140
- Strategic Rationale: Opengear's solutions complement Digi's existing offerings, enabling them to provide complete connectivity solutions for critical infrastructure applications.
Growth Trajectory and Initiatives
Historical Growth: Digi has demonstrated solid revenue and earnings growth over the past few years, driven by the increasing adoption of IoT technologies.
Future Projections: Analysts project continued revenue growth for Digi in the coming years, driven by its strong position in the industrial IoT market and its focus on innovative solutions.
Recent Initiatives: Recent strategic initiatives include acquisitions to expand product offerings, investments in new technologies, and expansion into new geographic markets.
Summary
Digi International is a strong player in the industrial IoT market, with a reputation for reliable connectivity solutions. Its focused approach to industrial applications and established distribution network contributes to its success. Digi needs to remain agile in the face of technological change and growing competition. They must also be mindful of the ongoing global economic challenges and component shortages, potentially impacting their supply chains and profitability.
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Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Analyst reports (e.g., Yahoo Finance, Bloomberg)
- Industry research reports (e.g., Gartner, IDC)
- Company website
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It should not be considered investment advice. Actual results may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Digi International Inc
Exchange NASDAQ | Headquaters Hopkins, MN, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Director Mr. Ronald E. Konezny | ||
Sector Technology | Industry Communication Equipment | Full time employees 805 | Website https://www.digi.com |
Full time employees 805 | Website https://www.digi.com | ||
Digi International Inc. provides business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions in the United States, Europe, the Middle East, Africa, 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 and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand. The company also provides embedded system products under the Digi Connect, ConnectCore, and Rabbit brands; and infrastructure management products comprising serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it provides Digi Remote Manager and Lighthouse, a recurring revenue cloud-based service that offers a secure environment for customers to manage their connected device deployment and network devices; SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitoring facilities or pharmacies by tracking the completion of operating tasks by employees, and quality control and incident management in food service, healthcare, and transportation/logistics industries; and Ventus for MNaaS solutions. Further, the company provides professional services, such as site planning, implementation management, application development, and customer training; data plan subscriptions; and enhanced technical support services, as well as Digi Wireless Design Services. Digi International Inc. was incorporated in 1985 and is headquartered in Hopkins, Minnesota.
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