Digi InternationalDGII -1.46%80 Gross Margin % is 64.00% as of Mar. 2026, which is 21% above its 10-year median of 52.78. GuruFocus rates DGII with a GF Score™ of 80/100 and a GF Value™ of $34.88 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,450 Hardware companies, Digi International ranks better than 94.9% on this metric.
The historical rank and industry rank for Digi International's Gross Margin % or its related term are showing as below:
DGII'
s Gross Margin % Range Over the Past 10 Years
Min: 46.83 Med: 52.78 Max: 63.45
Current: 63.45
During the past 13 years, the highestGross Margin % of Digi International was 63.45%. The lowest was 46.83%. And the median was 52.78%.
DGII's Gross Margin % is ranked better than 94.9% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs DGII: 63.45
Digi International had a gross margin of 64.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digi International was 3.70% per year.
Digi International (NAS:DGII) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Digi International had a gross margin of 64.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Digi International Gross Margin % Related Terms
Digi International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digi International's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DGII vs VISN, HLIT, EXTR: Gross Margin % Comparison
For the Communication Equipment subindustry, Digi International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digi International Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digi International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Digi International (DGII) has a Gross Margin % of 64.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digi International and its competitors. This is 21% above median its historical median of 52.78. Over the past decade, Digi International's Gross Margin % has ranged from 46.83 to 63.45. According to the industry distribution chart, Digi International ranks #125 out of 2450 companies in the Hardware industry, placing it in the top 5.1%.
Is Digi International's Gross Margin % too high?
Digi International's current Gross Margin % of 64.00% is 21% above median its 10-year median of 52.78. Over the past 10 years, this metric has ranged from a low of 46.83 to a high of 63.45. The Hardware industry median Gross Margin % is 24.53. Digi International's value of 64.00% is 160.9% above this industry median. Based on the distribution chart, Digi International ranks #125 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Digi International has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digi International's Gross Margin % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #125 out of 2450 companies for Gross Margin %. This places Digi International in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Digi International's value of 64.00% is 160.9% above this benchmark. Historically, Digi International's own Gross Margin % has ranged from 46.83 to 63.45 over the past decade. While the company's 10-year median is 52.78 vs. the industry median of 24.53, Digi International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Gross Margin % of 64.00% is 160.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Digi International and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Gross Margin % is 64.00%, which is 21% above median its own 10-year median of 52.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digi International stock overvalued right now?
Based on GuruFocus' analysis, Digi International (DGII) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.88, compared to a current price of $67.74 — trading 94.2% above its estimated fair value. The current Gross Margin % is 64.00%, which is 21% above median its 10-year median of 52.78 and 160.9% above the Hardware industry median of 24.53. Digi International's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Digi International (DGII), the current Gross Margin % is 64.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digi International (DGII) Overvalued in 2026?
Based on GuruFocus' analysis, Digi International stock appears to be overvalued.
The current stock price of $67.74 is trading 94.2% above its estimated GF Value™ of $34.88.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
Gross Margin %: 64.00% (21% above median its 10-year median of 52.78)
GF Value™: $34.88 vs. price of $67.74 (94.2% above fair value)
Industry Position: 160.9% above the Hardware median (#125 of 2450)
No single metric tells the full story. See the DGII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digi International Inc is a Minnesota corporation that provides business and mission-critical Internet of Things (IoT) connectivity products and services. It operates through two segments: IoT Products & Services, which supports OEMs, enterprise, and government customers in deploying secure IoT connectivity solutions, and IoT Solutions, consisting of SmartSense and its Managed Network-as-a-Service (MNaaS) business offering wireless temperature and condition-based monitoring, employee task management, label printing, and other services. The company generates the majority of its revenue from the IoT Products & Services segment and mainly from the United States, with a presence in Europe, the Middle East and Africa, and the Rest of the world.
80GF Score
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