Digi InternationalDGII -4.23%80 Return-on-Tangible-Asset is 24.37% as of Mar. 2026, which is 274% above its 10-year median of 6.51. GuruFocus rates DGII with a GF Score™ of 80/100 and a GF Value™ of $35.10 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,497 Hardware companies, Digi International ranks better than 97.96% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Digi International's annualizedNet Income for the quarter that ended in Mar. 2026 was $45.2 Mil. Digi International's average total tangible assets for the quarter that ended in Mar. 2026 was $185.6 Mil. Therefore, Digi International's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 24.37%.
The historical rank and industry rank for Digi International's Return-on-Tangible-Asset or its related term are showing as below:
DGII'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.86 Med: 6.51 Max: 23.05
Current: 23.05
During the past 13 years, Digi International's highest Return-on-Tangible-Asset was 23.05%. The lowest was 0.86%. And the median was 6.51%.
DGII's Return-on-Tangible-Asset is ranked better than 97.96% of 2497
companies
in the Hardware industry
Industry Median: 2.43
vs DGII: 23.05
Digi International (NAS:DGII) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Digi International Return-on-Tangible-Asset Related Terms
Digi International Return-on-Tangible-Asset Historical Data
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The historical data trend for Digi International's Return-on-Tangible-Asset 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, ONDS: Return-on-Tangible-Asset Comparison
For the Communication Equipment subindustry, Digi International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Digi International's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 24.37% mean?
Digi International (DGII) has a Return-on-Tangible-Asset of 24.37% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Digi International and its competitors. This is 274% above median its historical median of 6.51. Over the past decade, Digi International's Return-on-Tangible-Asset has ranged from 0.86 to 23.05. According to the industry distribution chart, Digi International ranks #51 out of 2497 companies in the Hardware industry, placing it in the top 2%.
Is Digi International's Return-on-Tangible-Asset too high?
Digi International's current Return-on-Tangible-Asset of 24.37% is 274% above median its 10-year median of 6.51. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 23.05. The Hardware industry median Return-on-Tangible-Asset is 2.43. Digi International's value of 24.37% is 902.9% above this industry median. Based on the distribution chart, Digi International ranks #51 out of 2497 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 Return-on-Tangible-Asset compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #51 out of 2497 companies for Return-on-Tangible-Asset. This places Digi International in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.43. Digi International's value of 24.37% is 902.9% above this benchmark. Historically, Digi International's own Return-on-Tangible-Asset has ranged from 0.86 to 23.05 over the past decade. While the company's 10-year median is 6.51 vs. the industry median of 2.43, 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 Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.43, based on 2,497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current Return-on-Tangible-Asset of 24.37% is 902.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Digi International and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Return-on-Tangible-Asset is 24.37%, which is 274% above median its own 10-year median of 6.51. 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 $35.10, compared to a current price of $70.13 — trading 99.8% above its estimated fair value. The current Return-on-Tangible-Asset is 24.37%, which is 274% above median its 10-year median of 6.51 and 902.9% above the Hardware industry median of 2.43. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Digi International (DGII), the current Return-on-Tangible-Asset is 24.37% 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 $70.13 is trading 99.8% above its estimated GF Value™ of $35.10.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
Return-on-Tangible-Asset: 24.37% (274% above median its 10-year median of 6.51)
GF Value™: $35.10 vs. price of $70.13 (99.8% above fair value)
Industry Position: 902.9% above the Hardware median (#51 of 2497)
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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