DGII (Digi International) Operating Income: $62.6 Mil (TTM As of Mar. 2026)


DGII Digi International Inc DGII
78 GF Score
Price $72.16
GF Value $35.07
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Digi International Operating Income?

Digi International DGII -2.66% 78 Operating Income is $62.6 Mil as of Mar. 2026. GuruFocus rates DGII with a GF Score™ of 78/100 and a GF Value™ of $35.07 (Significantly Overvalued). The stock has 7 warning signs investors should review.

Digi International's Operating Income for the three months ended in Mar. 2026 was $17.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $62.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Digi International's Operating Income for the three months ended in Mar. 2026 was $17.1 Mil. Digi International's Revenue for the three months ended in Mar. 2026 was $130.7 Mil. Therefore, Digi International's Operating Margin % for the quarter that ended in Mar. 2026 was 13.06%.

Good Sign:

Digi International Inc operating margin is expanding. Margin expansion is usually a good sign.

Digi International's 5-Year average Growth Rate for Operating Margin % was 27.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Digi International's annualized ROC % for the quarter that ended in Mar. 2026 was 5.87%. Digi International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 168.01%.


Digi International  (NAS:DGII) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Digi International's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=68.292 * ( 1 - 23.67% )/( (858.292 + 917.867)/ 2 )
=52.1272836/888.0795
=5.87 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=918.437 - 32.462 - ( 30.932 - max(0, 113.719 - 141.402+30.932))
=858.292

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=974.227 - 41.651 - ( 31.741 - max(0, 131.936 - 146.645+31.741))
=917.867

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Digi International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=68.116/( ( (40.66 + max(-4.785, 0)) + (40.425 + max(-16.398, 0)) )/ 2 )
=68.116/( ( 40.66 + 40.425 )/ 2 )
=68.116/40.5425
=168.01 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(59.676 + 39.567 + 6.756) - (32.462 + 54.698 + 23.624)
=-4.785

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(61.16 + 44.766 + 7.125) - (41.651 + 55.906 + 31.892)
=-16.398

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Digi International's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=17.073/130.743
=13.06 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Digi International Operating Income Related Terms


Digi International Operating Income Historical Data

* Premium members only.

The historical data trend for Digi International's Operating Income 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.

Digi International Operating Income Chart

Digi International Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.30 32.02 50.10 48.09 56.29

Digi International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.73 14.92 14.28 16.33 17.07
DGII
78GF Score
Digi International Inc DGII
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Digi International Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $62.6 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $62.6 Mil mean?
Digi International (DGII) has a Operating Income of $62.6 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Digi International and its competitors.
Is Digi International's Operating Income too high?
Digi International's current Operating Income is $62.6 Mil. Overall, Digi International has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digi International's Operating Income compare to VISN and HLIT?
Digi International's Operating Income of $62.6 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Hardware company?
A good Operating Income depends on the Hardware industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Digi International and its competitors. Digi International's current Operating Income is $62.6 Mil. 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 $35.07, compared to a current price of $72.16 — trading 105.8% above its estimated fair value. The current Operating Income is $62.6 Mil. Digi International's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Digi International (DGII), the current Operating Income is $62.6 Mil 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 $72.16 is trading 105.8% above its estimated GF Value™ of $35.07. GuruFocus considers Digi International to be Significantly Overvalued.

Key valuation signals for DGII:

  • Operating Income: $62.6 Mil
  • GF Value™: $35.07 vs. price of $72.16 (105.8% above fair value)
  • GF Score™: 78/100 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.
78GF Score

Get the complete analysis for DGII

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$72.16
Price
$35.07
GF Value