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58

DGII

💻 Technology

Digi International Inc.

Conservative #349Aggressive #614Low RiskMixed 48ML↑ 26pt
$49.91+2.91%
Day High$50.44
Day Low$48.43
Volume0.2M
Mkt Cap$1.9B
52W Low $2252W High $52
Market Cap
$1.9B
P/E Ratio
44.2
Sector avg: 87.8
Rev Growth
1.5%
Sector avg: 14.8%
Earnings Growth
81.3%
Profit Margin
9.5%
Sector avg: -110.0%
Debt/Equity
0.24

Why This Score

DGII scores 58.1 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 2-point penalty for execution risk.
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Elevated valuation at 44.2x earnings — requires sustained growth to justify the premium.

Moderate penalties (-5.0 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score58.1
Fundamental Score66.1
ML Score31.0

Score by Horizon

3 Month
80.6
6 Month
90.1
Primary
1 Year
94.8

Quality Assessment

C
Earnings Grade
Mixed fundamentals, potential quality issues

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
100
Advancing
Sentiment (2.5%)
66
Positive
Analyst (6.4%)
67
Favorable
Tradability (post-hoc)
63
Grade B
Base
57.1
SHAP
+2.9
Factors
+1.1
Divergence
-3.0
Final
58.1
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)52.0
Technical (Momentum, Weinstein, Volatility)92.0
External (Sentiment, Analyst, Macro)83.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
+12.2% to +18.5%
Medium-term
+17.8% to +27.2%
Long-term
+26.2% to +39.1%

ML Model Core Features100 trained inputs → ML Score: 31

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score66.7/100
Target Upside+4.3%
Coverage18 analysts
Market Sentiment
Sentiment Score65.8/100
News Volume1 articles
Technical Stage
Weinstein Stage2 — Advancing
12M Momentum+0.6%
6M Momentum+0.4%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+19.0%
Momentum ConsistencyModerate (0.67)
Relative Strength vs Sector+54.4%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality+0.543
Momentum BreadthBroad ✓
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
15%
Low risk
Sector RevGr Rank
P21
Revenue growth vs Technology peers
Sector PE Rank
P29
Valuation vs Technology peers
Sector FCF Rank
P65
Free cash flow vs Technology peers
Growth Deviation
-0.2σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 68 relative to sector peers68/100
Machine learning model ranks this stock at the 94th percentileP94
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +4.3pt (features align with model priorities)—
Blend: 91% fund (67.9) + 9% ML (93.7) + SHAP(+4.3) = 74.5—
Factor quality: +1.7pt (multi-factor composite)—
Risk assessment: low. Annualized volatility 8.0%Low
Market cap adjustment: -8.0 points ($1.9B market cap)-8.0 pts
Divergence penalty: -2.3pt (ML 26pt higher)—
Risk Factors
Earnings quality grade C: mixed earnings quality, some red flags. Score adjusted by -14 pointsGrade C
Quality concern: Earnings/revenue growth ratio of 56x — earnings quality suspect; High accrual ratio (-168.3%) — earnings quality concernFlag

Sector Peer Comparison(Technology — Rank #81 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
DGII58.144.21.5%9.5%$1.9B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%—

Market Sentimentvia FMP

Analyst Consensus
Buy18 analysts
Buy: 12Hold: 6
Price Target
$50consensus
Low $46Median $50High $55
+0.8% to consensus target

Company Overviewvia FMP

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 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 provides embedded system products under the Digi Connect, ConnectCore, and Rabbit brands; and infrastructure management products, comprising of serial servers, which offers serial port-to-Ethernet integration of devices into wired Ethernet networks; and universal serial bus solutions. In addition, it offers Digi Remote Manager, a recurring revenue cloud-based service that provides a secure environment for customers to manage their connected device deployment; Digi Wireless Design Services; and SmartSense by Digi for monitoring wirelessly the temperature of food and other perishable or sensitive goods, monitor facilities or pharmacies by tracking the completion of operating tasks by employees, as well as quality control and incident management for food service, healthcare, and transportation/logistics industries. 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. Digi International Inc. was incorporated in 1985 and is headquartered in Hopkins, Minnesota.

CEO
Ronald E. Konezny
Employees
805
Beta
0.82
Industry
Communication Equipment
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
61.2
Neutral
Trend
Bullish
10-day vs 50-day MA
From 52W High
-3.6%
High: $51.78
From 52W Low
+122.9%
Low: $22.39
Moving Averages
10-Day
$48.70
Above
20-Day
$46.80
Above
50-Day
$44.80
Above
200-Day
$38.00
Above
60-Day Support
$38.9
60-Day Resistance
$51.78
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 2 — AdvancingScore: 90/100

Stock is in an uptrend above the 200-day moving average. This is the stage where institutional accumulation typically occurs. The 50-day SMA provides support.

Favorable technical position; 50-day SMA acts as support
Price vs 200 SMA
+31.3%
200 SMA Slope (60d)
+14.31%
Rising
Volume Ratio
1.15x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%

Financial Statementslast 4 quarters via FMP

MetricQ1 2025Q4 2025Q3 2025Q2 2025
Revenue$122M$114M$108M$105M
Gross Profit$76M$73M$68M$65M
Operating Income$16M$14M$15M$14M
Net Income$12M$10M$10M$10M
EPS (Diluted)$0.31$0.26$0.27$0.28
Gross Margin62.4%63.9%63.5%62.1%
Operating Margin13.3%12.5%13.9%13.1%
Net Margin9.6%8.7%9.5%10.0%

Why This Stock

Technology

Tradability FilterGrade B — 63/100Score impact: -0.6pt

Volume
62
317K avg/day
Dollar Vol
70
$15M/day
Float
40
0K shares
Mkt Cap
56
$1.9B
Range
100
131% spread
Composite Liquidity Score63/100
FDCBA

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$16.33$25.6344.3%Wide
2022$18.54$43.6880.8%Wide
2023$21.25$42.9567.6%Wide
2024$20.17$34.8253.3%Wide
2025$22.39$48.0072.8%Wide
3-Year Range
81.6%
Narrow Years
0 / 5
Sideways Penalty
None
Free Float
0.0%
Outstanding Shares
0M
Bid-Ask Spread
131.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.