In recent years, multiple sensor-based devices and systems have been deployed in smart agriculture, industrial automation, E-Health, etc. The diversity of sensor data types and the amount of data pose critical challenges for data transmission and storage. The conventional data compression methods are tuned for a data type, e.g., OGG for audio. Due to such limitations, traditional compression algorithms may not be suitable for a system with multiple sensors. In this paper, we present a novel transform named as discrete multi-level divisor transform (DMDT). A signal compression algorithm is proposed for one-dimensional signals using the DMDT. The universality of the proposed compression algorithm is demonstrated by considering various types of signals, such as audio, electrocardiogram, accelerometer, magnetometer, photoplethysmography, and gyroscope. The proposed DMDT-based signal compression algorithm is also compared with the state-of-the-art compression algorithms.