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Digi International

DGII on Nasdaq. Digi International sells equipment and services for connected machines to businesses and government agencies. Market value $2.8bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to September 2025.

Should I look at this?

Good business, but not cheap right now

Why it could be worth it

What to watch out for

See cheaper Technology stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
annual report to September 2025
3.8%fair

For every $100 of what the whole company costs, it produced $3.75 of spare cash last year. A savings account pays about $4.

Price to profit
past 12 months to June 2026
40.9×full

You pay 40.9 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to September 2025
5.6%five-year median

Each dollar kept in the business earns 6 cents a year. Above 10 is good.

Quality score: 82 of 100. Price score: 30 of 100. Our list needs 70 on quality and 60 on price.

$73.94 a share, 115% above its 1-year low

Over the past year the price has ranged from $34.41 to $86.84.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.1
0.0
0.0
0.1
0.1
20212022202320242025
Revenue
$309m$388m$445m$424m$430m
Operating margin
3.4%9.8%11.3%11.3%13.1%
Debt to equity
0.100.470.380.210.25
Shares outstanding
0.04bn0.04bn0.04bn0.04bn0.04bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)5 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt0.25× equity
  • Revenue growth, five yearsSlow, 9.0% a year
  • Buying back its own sharesNo, 8% more shares since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $139 million last quarter, up 29% on a year ago.
  • Profit: $16 million, up 54% on a year ago.
  • It keeps 14 cents of each $1 of sales as operating profit, about the same as a year earlier.
  • 3% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $80 million more than cash, up from $20 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$105m
December 2024$104m
March 2025$105m
June 2025$108m
September 2025$114m
December 2025$122m
March 2026$131m
June 2026$139m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$12m
December 2024$10m
March 2025$10m
June 2025$10m
September 2025$10m
December 2025$12m
March 2026$11m
June 2026$16m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
21 November 2025
Next quarterly (estimated, 10-Q)
4 November 2026

Who owns it

7 long-term investors we follow own it, up from 6 last quarter. 281 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

4 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 5 sold $11m.

  • Loch James J.
    SR VP, CFO AND TREASURER
    Sold
    Date
    2 June 2026
    Shares
    100,000
    Price
    $69.44
    Value
    $7m
  • Freeland James E.
    VP, Chief Information Officer
    Sold
    Date
    26 May 2026
    Shares
    450
    Price
    $68.00
    Value
    $30,600
  • Sampsell David H.
    VP, CORP. DEV, GC & CORP. SEC.
    Sold
    Date
    13 May 2026
    Shares
    6,376
    Price
    $65.11
    Value
    $415,109
  • Schneider Terrence G.
    VP, SUPPLY CHAIN
    Sold
    Date
    11 May 2026
    Shares
    14,182
    Price
    $65.61
    Value
    $930,481
  • Freeland James E.
    VP, Chief Information Officer
    Sold
    Date
    10 February 2026
    Shares
    1,355
    Price
    $45.84
    Value
    $62,106
  • Khanuja Satbir
    Director
    Sold
    Date
    10 February 2026
    Shares
    6,000
    Price
    $46.00
    Value
    $276,000
  • Sampsell David H.
    VP, CORP. DEV, GC & CORP. SEC.
    Sold
    Date
    10 February 2026
    Shares
    5,000
    Price
    $45.74
    Value
    $228,700
  • Sampsell David H.
    VP, CORP. DEV, GC & CORP. SEC.
    Sold
    Date
    9 February 2026
    Shares
    1,100
    Price
    $45.04
    Value
    $49,544
  • Schneider Terrence G.
    VP, SUPPLY CHAIN
    Sold
    Date
    25 November 2025
    Shares
    4,208
    Price
    $41.68
    Value
    $175,389
  • Sampsell David H.
    VP, CORP. DEV, GC & CORP. SEC.
    Sold
    Date
    25 November 2025
    Shares
    8,748
    Price
    $41.52
    Value
    $363,217

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 21 Nov 2025, plus the 10-Q filed 5 Aug 2026 and 6 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 40.9× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.