• Earlier in January 2026, Digi International launched SmartSense ONE and expanded its Digi Ventus Managed Connectivity Solutions, integrating monitoring, compliance, and managed 5G connectivity for customers and channel partners across sectors such as retail, food service, and healthcare.
• The move highlights Digi’s push toward unified, modular platforms and recurring managed-service offerings that tie together hardware, software, and data-driven operational insights.
• We’ll now examine how this deeper focus on modular compliance platforms and managed 5G connectivity could shape Digi International’s investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

What Is Digi International's Investment Narrative?

For Digi International, the investment case really comes down to believing in its shift from selling connected hardware to running higher value platforms and managed services. The launch of SmartSense ONE and the expanded Digi Ventus managed 5G offering both lean into that theme, pushing more modular, software-heavy, recurring-revenue style relationships with retailers, food service operators, and healthcare providers, as well as MSPs and carriers. In the near term, the key catalysts still sit around execution on earnings and how efficiently Digi monetizes these platforms, especially given the share price already embeds a relatively rich earnings multiple and strong multi‑year returns. The new launches could strengthen those catalysts if adoption is strong, but they also raise the execution bar and add integration and go‑to‑market risk that was less pronounced before.

However, investors should also weigh how much must go right for these platforms to justify today’s valuation. Digi International's shares have been on the rise but are still potentially undervalued by 28%. Find out what it's worth.

Exploring Other Perspectives

Three Simply Wall St Community fair value views span roughly US$37 to just over US$60 per share, underlining how far apart private investors can be. Set against Digi’s push into modular compliance and managed 5G services, this spread highlights why it can help to compare several viewpoints before deciding how much of the platform transition you want to factor into the company’s future performance.

Explore 3 other fair value estimates on Digi International - why the stock might be worth as much as 39% more than the current price!

Build Your Own Digi International Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Digi International research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Digi International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digi International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.