ASX

ASE Technology Holding Co

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Digi International generates cash by designing and selling communication equipment that enables device connectivity across industrial and enterprise environments. Its model depends on embedding hardware into customer infrastructure, creating recurring upgrade and replacement cycles as networks evolve. The moat is not explosive innovation but integration depth—once deployed within operational systems, switching costs and compatibility requirements can anchor long-term relationships. Cash flow durability comes from being part of mission-critical communication layers where reliability, certification, and installed base scale matter more than brand flash.

VALUATION

P/E

45.1

Market Cap ($M USD)

$54,452

Forward P/E

20.7

PEG

0.9

PRICE TO SALES

2.7

PRICE TO BOOK

5.1

EV / EBITDA

15.1

5-Year Average P/E

DIVIDEND

Yield

1.40%

Annual Payout

$0.36

Payout Ratio

56.20%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

21.20%

Financial Health & Profitability

Earnings Per Share

$0.58

Next Year EPS Growth Estimate

$1.20

Next Year Revenue Growth Estimate

15.10%

Return on Equity (ROE)

11.70%

Operating Margin

8.00%

Debt-to-Equity

0.8

Piotroski F-Score

6

Altman Z-Score

3.2

Return on Invested Capital (ROIC)

7.90%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 48.1x earnings with a Forward P/E of 20.5, the market is pricing DGII as a growth re-acceleration story despite modest current profitability. The compression from 48.1 to 20.5 implies expectations of meaningful earnings normalization, yet a PEG Forward of 33.9 signals that growth relative to price is stretched. Financially, the company is stable rather than distressed, supported by a strong Altman Z-Score of 5.7 and manageable Debt/Equity of 13.20%, but returns are uninspiring with 7.20% ROE and 6.10% ROIC. This is not a balance sheet risk story; it is a multiple risk story—valuation is demanding relative to operating quality.

AI Exposure / Tech Reliance

As a Communication Equipment company in the Technology sector, DGII operates in infrastructure layers that are directly exposed to AI-driven connectivity demand. AI proliferation increases edge device connectivity, data transmission, and embedded network hardware needs—areas where communication equipment providers can benefit structurally. However, with Operating Margin at 6.50%, the company must prove it can convert industry tailwinds into scalable profitability rather than commoditized volume.

The Bull Case

A GARP investor could justify ownership based on stability and incremental improvement potential. The Altman Z-Score of 5.7 and Current Ratio of 1.2 indicate financial resilience, while low Debt/Equity at 13.20% provides flexibility in a capital-intensive sector. ROIC at 6.10% exceeding many cost-of-debt environments and a Piotroski F-Score of 4 suggest the company is not deteriorating financially, even if it is not elite. If EPS expands toward the $1.14 estimate next year and margins widen beyond 6.50%, the Forward P/E of 20.5 becomes reasonable for a technology infrastructure name with institutional ownership at 50.60%, implying professional capital already sees baseline stability.

The Bear Case

The bear case is straightforward: 48.1x earnings for a company generating just 6.50% operating margins and 7.20% ROE is aggressive. A PEG Forward of 33.9 is a flashing red signal that expected growth does not justify the multiple being paid. The Piotroski F-Score of 4 is mediocre, not indicative of strong operational momentum, and Sales Growth Next Year at 2.63 suggests limited top-line acceleration. With no meaningful dividend support and a TTM Yield of 0.2, investors are entirely dependent on execution and multiple expansion, leaving little margin of safety if growth stalls.

Market Sentiment & Smart Money

Short Interest %

0.30%

Analyst Consensus

1.5

Average Analyst Price Target

$24.25

Institutional Ownership %

7.70%

1-Year Beta

1.46

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

98.10%%

Distance to 52-Week Low

316.00%%