Digi InternationalDGII -1.46%80 ROA % is 4.78% as of Mar. 2026, which is 78% above its 10-year median of 2.68. GuruFocus rates DGII with a GF Score™ of 80/100 and a GF Value™ of $34.89 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,497 Hardware companies, Digi International ranks better than 67.48% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Digi International's annualizedNet Income for the quarter that ended in Mar. 2026 was $45.2 Mil.
Digi International's average Total Assets over the quarter that ended in Mar. 2026 was $946.3 Mil. Therefore, Digi International's annualized ROA % for the quarter that ended in Mar. 2026 was 4.78%.
The historical rank and industry rank for Digi International's ROA % or its related term are showing as below:
DGII'
s ROA % Range Over the Past 10 Years
Min: 0.45 Med: 2.68 Max: 5.25
Current: 4.95
During the past 13 years, Digi International's highest ROA % was 5.25%. The lowest was 0.45%. And the median was 2.68%.
DGII's ROA % is ranked better than 67.48% of 2497
companies
in the Hardware industry
Industry Median: 2.27
vs DGII: 4.95
Digi International (NAS:DGII) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Digi International ROA % Related Terms
Digi International ROA % Historical Data
* Premium members only.
The historical data trend for Digi International's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's ROA % distribution charts can be found below:
* The bar in red indicates where Digi International's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Digi International (DGII) has a ROA % of 4.78% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Digi International and its competitors. This is 78% above median its historical median of 2.68. Over the past decade, Digi International's ROA % has ranged from 0.45 to 5.25. According to the industry distribution chart, Digi International ranks #812 out of 2497 companies in the Hardware industry, placing it in the top 32.5%.
Is Digi International's ROA % too high?
Digi International's current ROA % of 4.78% is 78% above median its 10-year median of 2.68. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 5.25. The Hardware industry median ROA % is 2.27. Digi International's value of 4.78% is 110.6% above this industry median. Based on the distribution chart, Digi International ranks #812 out of 2497 companies in the Hardware industry, which is above the industry midpoint. 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 ROA % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #812 out of 2497 companies for ROA %. This puts Digi International in the upper half of its industry. The industry median ROA % is 2.27. Digi International's value of 4.78% is 110.6% above this benchmark. Historically, Digi International's own ROA % has ranged from 0.45 to 5.25 over the past decade. While the company's 10-year median is 2.68 vs. the industry median of 2.27, 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 ROA % for a Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,497 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current ROA % of 4.78% is 110.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Digi International and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current ROA % is 4.78%, which is 78% above median its own 10-year median of 2.68. 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 $34.89, compared to a current price of $67.74 — trading 94.2% above its estimated fair value. The current ROA % is 4.78%, which is 78% above median its 10-year median of 2.68 and 110.6% above the Hardware industry median of 2.27. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Digi International (DGII), the current ROA % is 4.78% 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 $34.89.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
ROA %: 4.78% (78% above median its 10-year median of 2.68)
GF Value™: $34.89 vs. price of $67.74 (94.2% above fair value)
Industry Position: 110.6% above the Hardware median (#812 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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