Digi International Inc (DGII) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 25, 2026
Digi International Inc (DGII)
A forensic read on Digi International Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
12.1
Distress distance
Clean
Earnings quality
3
Forensic signals
56.2
P / E (ttm)
6.4%
ROE
$2.9B
Market cap
1.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Digi International Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 12.1, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
5.8%
FY2025
Return on invested capital.Return on invested capital is 5.8% in the latest fiscal year and steady across FY2023–FY2025, inside a 0.4-point range. After-tax operating profit was $45M in FY2023 and $46M in FY2025, with operating income at 11.3% of revenue in FY2023, 11.3% in FY2024 and 13.1% in FY2025. The capital base behind it barely moved across FY2023–FY2025 ($733M to $793M, +8%), so there has been little new capital for that return to be earned on.
+1.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +2% over the last 2 years to FY2025 (+1.2%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~2%.
+13.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +13.3% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 9% of net operating assets, against an accruals ratio of 13.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$430.2M
Revenue Growth YoY+1.5%
Revenue CAGR (2yr)-1.7%
Net Margin9.5%
Free Cash Flow$105.3M
Return on Equity6.4%
Debt / Equity0.25x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Digi International Inc's actual 10-K/10-Q/8-K filings?