Digi InternationalDGII -2.66%80 3-Year ROIIC % is 17.98 as of Sep. 2025, which is 150% above its 10-year median of 7.20. GuruFocus rates DGII with a GF Score™ of 80/100 and a GF Value™ of $35.02 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,369 Hardware companies, Digi International ranks better than 69.44% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Digi International's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 17.98%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Digi International's 3-Year ROIIC % or its related term are showing as below:
DGII's 3-Year ROIIC % is ranked better than 69.44% of 2369
companies
in the Hardware industry
Industry Median: 2.36
vs DGII: 17.98
Digi International (NAS:DGII) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Digi International 3-Year ROIIC % Related Terms
Digi International 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Digi International's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Communication Equipment subindustry, Digi International's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Digi International's 3-Year ROIIC % falls into.
Digi International's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 46.011446 (Sep. 2025) - 32.02 (Sep. 2022) )
/
( 864.351 (Sep. 2025) - 786.526 (Sep. 2022) )
=
13.991446
/
77.825
=
17.98%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Digi International (DGII) has a 3-Year ROIIC % of 17.98 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Digi International and its competitors. This is 150% above median its historical median of 7.20. According to the industry distribution chart, Digi International ranks #724 out of 2369 companies in the Hardware industry, placing it in the top 30.6%.
Is Digi International's 3-Year ROIIC % too high?
Digi International's current 3-Year ROIIC % of 17.98 is 150% above median its 10-year median of 7.20. The Hardware industry median 3-Year ROIIC % is 2.36. Digi International's value of 17.98 is 661.9% above this industry median. Based on the distribution chart, Digi International ranks #724 out of 2369 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 3-Year ROIIC % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #724 out of 2369 companies for 3-Year ROIIC %. This puts Digi International in the upper half of its industry. The industry median 3-Year ROIIC % is 2.36. Digi International's value of 17.98 is 661.9% above this benchmark. While the company's 10-year median is 7.20 vs. the industry median of 2.36, 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.36, based on 2,369 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current 3-Year ROIIC % of 17.98 is 661.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Digi International and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current 3-Year ROIIC % is 17.98, which is 150% above median its own 10-year median of 7.20. 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 $35.02, compared to a current price of $72.16 — trading 106.1% above its estimated fair value. The current 3-Year ROIIC % is 17.98, which is 150% above median its 10-year median of 7.20 and 661.9% above the Hardware industry median of 2.36. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Digi International (DGII), the current 3-Year ROIIC % is 17.98 as of Sep. 2025. 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 106.1% above its estimated GF Value™ of $35.02.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
3-Year ROIIC %: 17.98 (150% above median its 10-year median of 7.20)
GF Value™: $35.02 vs. price of $72.16 (106.1% above fair value)
Industry Position: 661.9% above the Hardware median (#724 of 2369)
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
Get the complete analysis for DGII
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DGII has been successfully added to your 
