Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Digi International's 3-Year RORE % for the quarter that ended in Mar. 2026 was 28.41%.
The industry rank for Digi International's 3-Year RORE % or its related term are showing as below:
DGII's 3-Year RORE % is ranked better than 70.08% of 2383
companies
in the Hardware industry
Industry Median: 5.1
vs DGII: 28.41
Digi International (NAS:DGII) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Digi International 3-Year RORE % Related Terms
Digi International 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Digi International's 3-Year RORE % 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 RORE % Comparison
For the Communication Equipment subindustry, Digi International's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Digi International's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Digi International's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Digi International (DGII) has a 3-Year RORE % of 28.41 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Digi International and its competitors. According to the industry distribution chart, Digi International ranks #713 out of 2383 companies in the Hardware industry, placing it in the top 29.9%.
Is Digi International's 3-Year RORE % too high?
Digi International's current 3-Year RORE % is 28.41. The Hardware industry median 3-Year RORE % is 5.10. Digi International's value of 28.41 is 457.1% above this industry median. Based on the distribution chart, Digi International ranks #713 out of 2383 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 RORE % compare to VISN and HLIT?
According to the Hardware industry distribution chart, Digi International ranks #713 out of 2383 companies for 3-Year RORE %. This puts Digi International in the upper half of its industry. The industry median 3-Year RORE % is 5.10. Digi International's value of 28.41 is 457.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Hardware company?
The median 3-Year RORE % among Hardware companies is 5.10, based on 2,383 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digi International's current 3-Year RORE % of 28.41 is 457.1% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Digi International and its competitors. For the Hardware industry, the median 3-Year RORE % is 5.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digi International's current 3-Year RORE % is 28.41. 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 $34.99, compared to a current price of $74.12 — trading 111.8% above its estimated fair value. The current 3-Year RORE % is 28.41 and 457.1% above the Hardware industry median of 5.10. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Digi International (DGII), the current 3-Year RORE % is 28.41 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 $74.12 is trading 111.8% above its estimated GF Value™ of $34.99.
GuruFocus considers Digi International to be Significantly Overvalued.
Key valuation signals for DGII:
3-Year RORE %: 28.41
GF Value™: $34.99 vs. price of $74.12 (111.8% above fair value)
Industry Position: 457.1% above the Hardware median (#713 of 2383)
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 RORE % 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 
