Digi InternationalDGII -1.46%80 Net Margin % is 8.65% as of Mar. 2026, which is 70% above its 10-year median of 5.09. 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 2,473 Hardware companies, Digi International ranks better than 77.56% on this metric.
The historical rank and industry rank for Digi International's Net Margin % or its related term are showing as below:
DGII'
s Net Margin % Range Over the Past 10 Years
Min: 0.72 Med: 5.09 Max: 9.48
Current: 9.1
DGII's Net Margin % is ranked better than 77.56% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs DGII: 9.10
Digi International (NAS:DGII) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Digi International Net Margin % Related Terms
Digi International Net Margin % Historical Data
* Premium members only.
The historical data trend for Digi International's Net 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.
For the Communication Equipment subindustry, Digi International's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Net Margin % distribution charts can be found below:
* The bar in red indicates where Digi International's Net 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.
Digi International (DGII) has a Net Margin % of 8.65% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Digi International and its competitors. This is 70% above median its historical median of 5.09. Over the past decade, Digi International's Net Margin % has ranged from 0.72 to 9.48. According to the industry distribution chart, Digi International ranks #555 out of 2473 companies in the Hardware industry, placing it in the top 22.4%.
Is Digi International's Net Margin % too high?
Digi International's current Net Margin % of 8.65% is 70% above median its 10-year median of 5.09. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 9.48. The Hardware industry median Net Margin % is 2.71. Digi International's value of 8.65% is 219.2% above this industry median. Based on the distribution chart, Digi International ranks #555 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 Net Margin % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #555 out of 2473 companies for Net Margin %. This places Digi International in the top 22% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.71. Digi International's value of 8.65% is 219.2% above this benchmark. Historically, Digi International's own Net Margin % has ranged from 0.72 to 9.48 over the past decade. While the company's 10-year median is 5.09 vs. the industry median of 2.71, 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 Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.71, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Net Margin % of 8.65% is 219.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Digi International and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Net Margin % is 8.65%, which is 70% above median its own 10-year median of 5.09. 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 Net Margin % is 8.65%, which is 70% above median its 10-year median of 5.09 and 219.2% above the Hardware industry median of 2.71. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Digi International (DGII), the current Net Margin % is 8.65% 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:
Net Margin %: 8.65% (70% above median its 10-year median of 5.09)
GF Value™: $34.88 vs. price of $67.74 (94.2% above fair value)
Industry Position: 219.2% above the Hardware median (#555 of 2473)
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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