Value
3.1/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 2.1 |
| P/S | 6.7 |
| EV/EBITDA | 0.0 |
| Fwd P/E | 5.3 |
| PEG | 1.5 |
| Analyst target | 3.0 |
- ▸Forward P/E: 23.8x
- ▸PEG: 6.61
DGII · Why this verdict
Why Digi International (DGII) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score4.6/10
ConfidenceHIGH
MacroRISK_OFF
Per-dimension breakdown
Quality
6.1/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 2.3 |
| ROA | 3.1 |
| Gross margin | 8.9 |
| Op margin | 5.2 |
| Net margin | 4.6 |
| Current ratio | 4.3 |
| FCF quality | 10.0 |
| Moat | 7.9 |
| Piotroski F | 8.9 |
- ▸Excellent cash conversion: 298% FCF/NI
- ▸Wide economic moat
- ▸Strong Piotroski F-Score: 8/9
Growth
5.8/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 8.8 |
| EPS growth | 2.7 |
- ▸Strong growth: 25% YoY
Momentum
3.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 9.0 |
| Volume | 1.6 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 5.2 |
| erm sentiment | 5.0 |
Insider
3.3/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 3.0 |
| insider conviction | 2.0 |
| holder change | 5.0 |
- ▸Notable insider selling — $8,320,557 (0.335% of mkt cap)
Peer rank
3.9/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.2 |
| quality rank | 5.2 |
| growth rank | 6.3 |
Technical
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 3.2 |
| support resistance | 3.1 |
| 52w position | 9.1 |
| gap | 5.0 |
Risk (lower is worse)
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 6.6 |
| days to cover | 4.7 |
| volatility | 2.4 |
| put call | 10.0 |
| implied vol | 0.8 |
| max pain risk | 3.0 |
| beta | 7.1 |
| debt equity | 9.1 |
- ▸High IV: 75%
- ▸Above max pain $30
Catalyst
4.7/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 2.1 |
- ▸Strong earnings: 3B/1M
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (5)
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:58d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:3.3<4.5
- ASYMMETRY:-1.1=NEGATIVE
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
-1.12
Upside
-11.9%
Downside
10.6%
Sizing output
AVOID
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — MCap $2.5B<$5B
Investment implication
The F-path SELL output reflects an overall score of 3.8 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Quality at 6.1) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:3.3<4.5, ASYMMETRY:-1.1=NEGATIVE) reinforce the read. Current asymmetry R:R is -1.12 — supplementary context, not the trigger for this path.
The strongest dimensions are Quality at 6.1, Growth at 5.8, and Risk (lower is worse) at 5.5; the weakest are Value at 3.1, Insider at 3.3, and Momentum at 3.3. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of -1.12 and an engine sizing output of AVOID.