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DGII vs FORTY

DGII
Digi International Inc.
NEUTRAL
Price
$52.22
Market Cap
$1.96B
Sector
Technology
AI Confidence
85%
FORTY
Formula Systems (1985) Ltd.
BEARISH
Price
$124.45
Market Cap
$1.91B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
DGII
46.62
FORTY
54.11
Forward P/E
DGII
19.88
FORTY
--
P/B Ratio
DGII
3.02
FORTY
1.4
P/S Ratio
DGII
4.38
FORTY
0.73
EV/EBITDA
DGII
21.36
FORTY
6.83

Profitability

Gross Margin
DGII
63.94%
FORTY
19.76%
Operating Margin
DGII
13.33%
FORTY
5.87%
Profit Margin
DGII
9.45%
FORTY
23.09%
ROE
DGII
6.84%
FORTY
6.88%
ROA
DGII
4.46%
FORTY
3.71%

Growth

Revenue Growth
DGII
17.9%
FORTY
2.4%
Earnings Growth
DGII
14.8%
FORTY
2645.3%

Financial Health

Debt/Equity
DGII
0.23
FORTY
0.33
Current Ratio
DGII
1.24
FORTY
1.63
Quick Ratio
DGII
0.84
FORTY
1.54

Dividends

Dividend Yield
DGII
--
FORTY
1.98%
Payout Ratio
DGII
0.0%
FORTY
107.08%

AI Verdict

DGII NEUTRAL

DGII shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 17.9%
Low debt with D/E ratio of 0.23
Risks
High valuation with P/E of 46.6
Premium vs Graham Number ($20.86)
FORTY BEARISH

FORTY exhibits significant financial fragility, highlighted by a weak Piotroski F-Score of 2/9, indicating deteriorating fundamental health. The stock is trading at a substantial premium, with a current price of $124.45 nearly double its Graham Number ($67.88) and Intrinsic Value ($67.85). While the company maintains a low Debt/Equity ratio, the unsustainable dividend payout ratio of 107.08% and a bearish technical trend (0/100) suggest a high risk of price correction. Extreme volatility in earnings growth and stagnant revenue growth (2.4% YoY) further undermine the current valuation.

Strengths
Low Debt/Equity ratio (0.33) indicating manageable leverage
Strong net profit margin of 23.09%
Low Price-to-Sales ratio (0.73) relative to sector
Risks
Severe fundamental weakness indicated by Piotroski F-Score of 2/9
Significant overvaluation relative to Graham and Intrinsic value estimates
Unsustainable dividend payout ratio (107.08%) exceeding earnings

Compare Another Pair

DGII vs FORTY: Head-to-Head Comparison

This page compares Digi International Inc. (DGII) and Formula Systems (1985) Ltd. (FORTY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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