Digi InternationalDGII +2.35%80 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 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 2,381 Hardware companies, Digi International ranks better than 99.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Digi International's annualized net income for the quarter that ended in Mar. 2026 was $45.2 Mil. Digi International's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-103.2 Mil. Therefore, Digi International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Digi International's Return-on-Tangible-Equity or its related term are showing as below:
DGII'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.05 Med: 7.41 Max: 12.26
Current: Negative Tangible Equity
During the past 13 years, Digi International's highest Return-on-Tangible-Equity was 12.26%. The lowest was 1.05%. And the median was 7.41%.
DGII's Return-on-Tangible-Equity is ranked better than 99.96% of 2381
companies
in the Hardware industry
Industry Median: 5.23
vs DGII: Negative Tangible Equity
Digi International (NAS:DGII) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Digi International Return-on-Tangible-Equity Related Terms
Digi International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Digi International's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
DGII vs VISN, HLIT, ONDS: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Digi International's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Digi International's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Digi International (DGII) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Digi International and its competitors. Over the past decade, Digi International's Return-on-Tangible-Equity has ranged from 1.05 to 12.26. According to the industry distribution chart, Digi International ranks #1 out of 2381 companies in the Hardware industry, placing it in the top 0%.
Is Digi International's Return-on-Tangible-Equity too high?
Digi International's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 12.26. Based on the distribution chart, Digi International ranks #1 out of 2381 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-Equity compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #1 out of 2381 companies for Return-on-Tangible-Equity. This places Digi International in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.23. Historically, Digi International's own Return-on-Tangible-Equity has ranged from 1.05 to 12.26 over the past decade. 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-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.23, based on 2,381 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Digi International and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 $74.95 — trading 114.7% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Digi International (DGII), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $74.95 is trading 114.7% above its estimated GF Value™ of $34.91.
GuruFocus considers Digi International to be Significantly Overvalued.
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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