Digi International Inc. provides business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. It operates through IoT Products & Services, and IoT Solutions segments. The company offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and …
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Competitive advantage assessment
Key strengths
Margins Consistently Above PeersGross margin at 62.9% (top 6%) and operating margin at 13.1% (top 9%) indicate strong pricing power.
Margins Stable Across CyclesOperating margin volatility is low (stability score 0.83), demonstrating pricing resilience across cycles.
Key risks
Liquidity ConcernsLiquidity is concerning (score 0.24), raising questions about short-term obligations.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Digi International Inc. ranks #5 of 59
scored companies in Communication Equipment by moat score — the top 8%.
The widest moat in the group is Ubiquiti Inc. (UI)
at 82/100.
Moat scores for companies ranked near DGII in Communication Equipment
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 62
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 86
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 75
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 56
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 87
· 15% of the moat score
Scale matters only when it converts into economics.
Digi International Inc. (DGII) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #5 of 59 scored companies in Communication Equipment, the top 8%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 58 companies in Communication Equipment. Its strongest defense is Pricing Power (89/100) and its weakest is Resilience (56/100).
How does Digi International Inc. compare with other Communication Equipment companies?
Digi International Inc. ranks #5 of 59 scored companies in Communication Equipment by moat score. The widest moat in Communication Equipment is Ubiquiti Inc. (UI) at 82/100. The companies ranked closest are Motorola Solutions, Inc. (MSI) at 79 just above it and Ericsson (ERIC) at 74 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 58 companies in Communication Equipment. The defenses are then weighted to produce the overall score out of 100.
Why is Digi International Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for Digi International Inc.?
The Corporate Default template measures 6 defenses, and DGII scores: Pricing Power (89), Cost Advantage (62), Customer Stickiness (86), Capital Efficiency (75), Resilience (56), Scale & Market Position (87). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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