Digi International's Stock Soars: What's Behind the Surge?

Digi International's stock has risen 11% in the past month, and its return on equity (ROE) is 6.9%. ROE measures a company's ability to generate returns on shareholder investment. While Digi International's ROE is not high compared to the industry average of 13%, the company has seen a 31% net income growth over the past five years, exceeding the industry average growth of 7.3%. This suggests that the company is being managed efficiently or has a low payout ratio.