DGII (Digi International) Moat Score: 5/10 (As of Jun. 28, 2026)


DGII Digi International Inc DGII
80 GF Score
Price $70.55
GF Value $34.91
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Digi International Moat Score?

Digi International DGII +1.97% 80 Moat Score is 5 as of Jun. 28, 2026. GuruFocus rates DGII with a GF Score™ of 80/100 and a GF Value™ of $34.91 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,473 Hardware companies, Digi International ranks better than 97.21% on this metric.

Digi International has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Digi International has Narrow Moat: Digi International Inc benefits from a solid narrow moat with its strong network effects in IoT solutions and switching costs for customers. Its innovation in connectivity solutions supports its competitive position, though it lacks the scale of larger tech firms.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Digi International might have Narrow Moat - Solid narrow moat.

Digi International  (NAS:DGII) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Digi International Moat Score Related Terms

DGII vs VISN, HLIT, EXTR: Moat Score Comparison

For the Communication Equipment subindustry, Digi International's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, Digi International's Moat Score distribution charts can be found below:

* The bar in red indicates where Digi International's Moat Score falls into.


DGII
80GF Score
Digi International Inc DGII
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Digi International (DGII) has a Moat Score of 5 as of Jun. 28, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Digi International ranks #69 out of 2473 companies in the Hardware industry, placing it in the top 2.8%.
Is Digi International's Moat Score too high?
Digi International's current Moat Score is 5. Based on the distribution chart, Digi International ranks #69 out of 2473 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 Moat Score compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #69 out of 2473 companies for Moat Score. This places Digi International in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Digi International's current Moat Score is 5. 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 $34.91, compared to a current price of $70.55 — trading 102.1% above its estimated fair value. The current Moat Score is 5. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Digi International (DGII), the current Moat Score is 5 as of Jun. 28, 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 $70.55 is trading 102.1% above its estimated GF Value™ of $34.91. GuruFocus considers Digi International to be Significantly Overvalued.

Key valuation signals for DGII:

  • Moat Score: 5
  • GF Value™: $34.91 vs. price of $70.55 (102.1% above fair value)
  • GF Score™: 80/100 with 7 warning signs

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 Business Description

Other Exchanges DGI:Germany
Address 9350 Excelsior Boulevard, Suite 700, Hopkins, MN, USA, 55343
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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$70.55
Price
$34.91
GF Value