Digi InternationalDGII -1.46%80 Interest Coverage is 7.69 as of Mar. 2026, which is 26% below its 10-year median of 10.34. 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 1,671 Hardware companies, Digi International ranks worse than 61.46% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Digi International's
Operating Income
for the
three
months ended in Mar. 2026 was $17.1 Mil. Digi International's Interest Expense for the
three
months ended in Mar. 2026 was $-2.2 Mil.
Digi International's interest coverage for the quarter that ended in Mar. 2026 was 7.69.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Digi International's Interest Coverage or its related term are showing as below:
DGII'
s Interest Coverage Range Over the Past 10 Years
Min: 1.63 Med: 10.34 Max: 237.1
Current: 8.68
DGII's Interest Coverage is ranked worse than 61.46% of 1671
companies
in the Hardware industry
Industry Median: 13.79
vs DGII: 8.68
Digi International (NAS:DGII) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Digi International Interest Coverage Related Terms
Digi International Interest Coverage Historical Data
* Premium members only.
The historical data trend for Digi International's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DGII vs VISN, HLIT, EXTR: Interest Coverage Comparison
For the Communication Equipment subindustry, Digi International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Digi International's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Digi International (DGII) has a Interest Coverage of 7.69 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Digi International and its competitors. This is 26% below median its historical median of 10.34. Over the past decade, Digi International's Interest Coverage has ranged from 1.63 to 237.10. According to the industry distribution chart, Digi International ranks #1027 out of 1671 companies in the Hardware industry, placing it in the top 61.5%.
Is Digi International's Interest Coverage too high?
Digi International's current Interest Coverage of 7.69 is 26% below median its 10-year median of 10.34. Over the past 10 years, this metric has ranged from a low of 1.63 to a high of 237.10. The Hardware industry median Interest Coverage is 13.79. Digi International's value of 7.69 is 44.2% below this industry median. Based on the distribution chart, Digi International ranks #1027 out of 1671 companies in the Hardware industry, which is below the industry midpoint. 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 Interest Coverage compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #1027 out of 1671 companies for Interest Coverage. This places Digi International in the lower half of its industry. The industry median Interest Coverage is 13.79. Digi International's value of 7.69 is 44.2% below this benchmark. Historically, Digi International's own Interest Coverage has ranged from 1.63 to 237.10 over the past decade. While the company's 10-year median is 10.34 vs. the industry median of 13.79, Digi International has consistently been below 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 Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Interest Coverage of 7.69 is 44.2% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Digi International and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Interest Coverage is 7.69, which is 26% below median its own 10-year median of 10.34. 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 Interest Coverage is 7.69, which is 26% below median its 10-year median of 10.34 and 44.2% below the Hardware industry median of 13.79. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Digi International (DGII), the current Interest Coverage is 7.69 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:
Interest Coverage: 7.69 (26% below median its 10-year median of 10.34)
GF Value™: $34.88 vs. price of $67.74 (94.2% above fair value)
Industry Position: 44.2% below the Hardware median (#1027 of 1671)
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
Get the complete analysis for DGII
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DGII has been successfully added to your 
