Digi International Intrinsic Value Calculation – DIGI INTERNATIONAL Reports Q3 FY2023 Earnings Results on August 3, 2023
August 10, 2023
🌥️Earnings Overview
On August 3 2023, DIGI INTERNATIONAL ($NASDAQ:DGII) announced their financial results for the third quarter of FY2023, which concluded on June 30 2023. The company reported total revenue of USD 112.2 million, a year-over-year increase of 8.4%, as well as a 63.0% increase in net income compared to the same period last year, amounting to USD 6.7 million.
Price History
On Thursday, August 3, 2023, DIGI INTERNATIONAL reported their Q3 FY2023 earnings results. The stock opened at $40.1 at the opening bell and closed at $35.7, a plunge of 14.6% from the previous closing price of 41.8. The company’s CEO issued a statement in response to the earnings results, attributing the disappointing performance to a mix of macroeconomic headwinds and continued uncertainty in the marketplace. As such, the company has announced a series of cost-cutting measures and restructuring plans to help them weather this difficult economic climate. The news sent shockwaves through the industry, as investors and analysts alike had predicted better performance from DIGI INTERNATIONAL. The stock is now trading at levels not seen since last year, and short-term outlook for the company appears bleak.
However, if DIGI INTERNATIONAL can successfully implement its restructuring plans and take advantage of any opportunities that arise during this period, they could very well turn things around in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Digi International. More…
| Total Revenues | Net Income | Net Margin |
| 438.42 | 29.63 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Digi International. More…
| Operations | Investing | Financing |
| 50.09 | -1.6 | -60.45 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Digi International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 840.06 | 308.48 | 14.5 |
Key Ratios Snapshot
Some of the financial key ratios for Digi International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.4% | 78.5% | 12.2% |
| FCF Margin | ROE | ROA |
| 11.9% | 6.4% | 4.0% |
Analysis – Digi International Intrinsic Value Calculation
At GoodWhale, we have performed an analysis of DIGI INTERNATIONAL‘s fundamentals. Through our proprietary Valuation Line, we have calculated the fair value of DIGI INTERNATIONAL share to be around $29.6. Currently, DIGI INTERNATIONAL stock is being traded at $35.7, which means it is overvalued by 20.4%. We recommend investors to watch the stock closely and make decisions based on their investment goals and risk appetite. More…
Peers
The company’s competitors include Fibocom Wireless Inc, Sierra Wireless Inc, and Telit Communications PLC.
– Fibocom Wireless Inc ($SZSE:300638)
Fibocom Wireless Inc is a leading global provider of wireless communications solutions. The company offers a wide range of products and services that enable people and businesses to connect and communicate wirelessly. Fibocom Wireless Inc has a market cap of 11.14B as of 2022, a Return on Equity of 11.01%. The company’s products and services are used by people and businesses around the world to connect and communicate wirelessly. Fibocom Wireless Inc is headquartered in Shenzhen, China.
– Sierra Wireless Inc ($TSX:SW)
Sierra Wireless Inc is a company that provides wireless data communications products. Its market cap as of 2022 is 1.57B and its ROE is -9.64%. The company’s products include embedded modules and gateways, which enable machine-to-machine applications.
Summary
DIGI INTERNATIONAL reported their third quarter earnings results for FY2023 on August 3, showing an 8.4% increase in total revenue to USD 112.2 million and a 63.0% year-over-year increase in net income to USD 6.7 million. Despite the positive news, the company’s stock price dropped the same day. This suggests that investors may be concerned about other factors, such as uncertain economic conditions or competitive pressures in the market. As a result, investors may want to closely monitor DIGI INTERNATIONAL’s future performance and take a cautious approach when considering whether to invest in the company.
Related Posts
Recent Posts
