ANF

Abercrombie & Fitch

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Apparel Retail

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/27/26

Business Summary

Digi International operates in communication equipment, providing connectivity hardware and infrastructure that enable devices and systems to transmit data reliably. The company monetizes through the sale of networking equipment and related solutions that are embedded in enterprise and industrial environments. Its moat is rooted in installed base integration, long product life cycles, and the switching costs associated with replacing embedded communication hardware. Cash generation depends on maintaining device relevance in evolving network standards while protecting margins in a competitive hardware landscape.

VALUATION

P/E

9.4

Market Cap ($M USD)

$4,420

Forward P/E

8.3

PEG

2.5

PRICE TO SALES

0.9

PRICE TO BOOK

3.2

EV / EBITDA

5.5

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$10.71

Next Year EPS Growth Estimate

$11.93

Next Year Revenue Growth Estimate

3.70%

Return on Equity (ROE)

36.10%

Operating Margin

13.30%

Debt-to-Equity

0.8

Piotroski F-Score

5

Altman Z-Score

5

Return on Invested Capital (ROIC)

20.20%%

Current Ratio

1.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 48.1x trailing earnings and 20.5x forward earnings, DGII is priced like a growth stock, yet its 6.50% operating margin and 7.20% ROE scream operational mediocrity. The Altman Z-Score of 5.7 signals strong balance sheet stability and low bankruptcy risk, reinforced by a modest 13.20% Debt/Equity ratio, so solvency is not the issue. The real question is valuation discipline: a 33.9 forward PEG ratio is extreme relative to its profitability profile, suggesting the market is demanding growth that simply is not evident in the return metrics. This is not a distressed asset mispriced for collapse, but neither is it an obvious GARP bargain given the spread between valuation and capital efficiency. The stock looks financially safe, but not obviously cheap.

AI Exposure / Tech Reliance

Operating in Communication Equipment within the Technology sector, DGII sits in a hardware layer that underpins connectivity and data transmission—core infrastructure for AI deployment and edge computing. As AI workloads expand, reliable device connectivity and network hardware remain foundational, which provides structural relevance. However, resilience will depend on whether the company can translate industry tailwinds into margin expansion beyond its current 6.50% operating level.

The Bull Case

A GARP investor could argue that the 20.5 forward P/E represents a normalization from the elevated 48.1 trailing multiple, implying earnings inflection. The balance sheet is conservatively structured with 13.20% Debt/Equity and a 1.2 current ratio, while the 5.7 Altman Z-Score indicates financial durability. ROIC at 6.10% and ROE at 7.20% are positive and, if paired with improving operating leverage, could justify multiple stability. The Piotroski F-Score of 4 is neutral but not distressed, suggesting fundamentals are stable rather than deteriorating. With a $2,025M market cap and 50.60% institutional ownership, the stock has credible sponsorship, and even a modest 0.2 TTM yield signals at least some capital return discipline.

The Bear Case

The bear case is straightforward: a 33.9 PEG ratio is indefensible against 6.10% ROIC and 7.20% ROE. Operating margin of 6.50% leaves little buffer in a cyclical hardware industry, and the 4.6 Price/Sales multiple is demanding for a business generating mid-single-digit returns on capital. A Piotroski F-Score of 4 indicates mediocre financial momentum, not strength. With no meaningful dividend policy and a valuation still elevated on trailing earnings, investors are effectively paying growth multiples for average execution. If earnings fail to accelerate meaningfully, multiple compression becomes the primary risk vector.

Market Sentiment & Smart Money

Short Interest %

11.70%

Analyst Consensus

1.92

Average Analyst Price Target

$119.50

Institutional Ownership %

104.10%

1-Year Beta

1.33

Insider Buying % (6 Mo)

2.40%%

Distance to 52-Week High

73.90%%

Distance to 52-Week Low

150.30%%