Digi International Inc. (DGII) intrinsic value & 10-year financials

Digi International Inc. (DGII) has a Graham intrinsic value of $19.08 per share. At $69.90 on Oct 17, 2026, the stock trades 266% above that value. Over the last 10 fiscal years revenue grew 8.7% a year to $430.2M, with an average return on invested capital of 4.4%.

Graham intrinsic value
$19.08
Share price (Oct 17, 2026)
$69.90
Price vs Graham value
266% above
Market cap
$2.6B
Revenue (FY2025)
$430.2M
Revenue growth (10-yr CAGR)
8.7%
ROIC (10-yr avg)
4.4%
Free cash flow (FY2025)
$105.3M

DGII 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $430.2M $40.8M $1.08 $105.3M 13.1% 6.3%
FY2024 $424.0M $22.5M $0.61 $80.9M 11.3% 6.7%
FY2023 $444.8M $24.8M $0.67 $32.4M 11.3% 6.9%
FY2022 $388.2M $19.4M $0.54 $35.8M 9.8% 6.9%
FY2021 $308.6M $10.4M $0.31 $55.5M 3.4% 2.7%
FY2020 $279.3M $8.4M $0.28 $33.6M 4.1% 3.5%
FY2019 $254.2M $10.0M $0.35 $19.6M 4.0% 3.5%
FY2018 $226.9M $1.3M $0.05 -$4.6M 1.0% 0.4%
FY2017 $181.6M $9.4M $0.35 $702.0K 4.8% 2.8%
FY2016 $203.0M $16.7M $0.64 $24.4M 8.4% 4.8%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

DIGI INTERNATIONAL INC is a consistent compounder, expanding top-line revenue at 8.7% annually over the past decade.

DIGI INTERNATIONAL INC has historically struggled to out-earn its cost of capital, averaging just 5.2% ROIC.

DIGI INTERNATIONAL INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, DIGI INTERNATIONAL INC is modeled at 6.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $19.08 per share.

DGII stock: frequently asked questions

What is the intrinsic value of Digi International Inc. (DGII) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 6.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DGII's intrinsic value is about $19.08 per share.

Is DGII stock undervalued?

At $69.90 (close on Oct 17, 2026), DGII trades 266% above its Graham value of $19.08. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Digi International Inc. grown?

Revenue went from $203.0M in fiscal 2016 to $430.2M in fiscal 2025, a compound annual growth rate of 8.7%. Net income was $40.8M in fiscal 2025.

Does Digi International Inc. generate free cash flow?

Digi International Inc. generated $105.3M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 9 of the last 10 reported years.

What is DGII's return on invested capital?

Average ROIC over the last 10 fiscal years was 4.4%, and average return on equity was 3.6%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DGII data come from?

From Digi International Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Aug 5, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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