DGII (DGII) Stock Analysis
Verdict: HOLD
High-margin IoT subscription acceleration drives $105M FCF, but trailing 57x P/E and insider selling constrain near-term valuation upside.
Investment score: 60/100
The AI model views Digi International Inc as a HOLD. While $105.3M in FY25 free cash flow and expanding 63.8% gross margins confirm strong IoT subscription demand, a trailing P/E of 57.1x and negative insider transaction trends cap short-term risk-adjusted potential.
Peers
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| VIAV | -281.31 | 5.72 | 5.87 | 63.38 | — | -0.02 |
| AAOI | -131.66 | 5.01 | 13.81 | -226.59 | — | -0.10 |
| ONDS | 78.90 | 2.42 | 24.84 | 62.89 | — | 0.96 |
| EXTR | 67.71 | 31.59 | 2.21 | 35.27 | — | 0.03 |
| NTCT | 23.49 | 1.69 | 3.23 | 11.80 | — | 0.14 |