Modine (MOD) AI Stock Analysis

• Market Cap: $4.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 2.25
• Revenue Growth: 4.87%
• EPS Growth: -29.43%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Parts
• EPS (TTM): 2.97
• Shares Outstanding: 52,574,000
• 10 Day Avg. Volume: 1,627,209
• 30 Day Avg. Volume: 1,404,408
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.83
• Price to Cash Flow (P/CF): 19.20
• P/FCF Ratio: 26.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $142.50
• Price Target Upside: 85.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Modine's overall stock score reflects its robust financial performance and positive earnings call sentiments, particularly in the Climate Solutions and data center segments. However, technical indicators show weak momentum, and the high P/E ratio suggests overvaluation concerns. The mixed signals from different segments and potential tariff impacts also add to the caution in the overall assessment.

Positive Factors

New Orders

Modine secured $180 million in orders for the company’s Airedale data center cooling systems from a new colocation customer in the United States that Modine has not worked with before.

Revenue Growth

Management expects data center revenue to increase more than 30% organically in fiscal 2026, to at least $820 million.

Negative Factors

Share Price Decline

The recent decline in share price is seen as a buying opportunity, and an Outperform rating is maintained.

Modine Business Overview & Revenue Model

Company Description

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications. It operates through Climate Solutions and Performance Technologies segments. The company offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; perimeter heating products, such as commercial fin-tube radiation, cabinet unit heaters, and convectors; roof-mounted direct- and indirect-fired makeup air units; unit ventilators; single packaged vertical units; precision air conditioning units for data center applications; air handler units; fan walls; chillers; ceiling cassettes; hybrid fan coils; and condensers and condensing units. It also provides microchannel, heat recovery, round tube plate fin, and motor and generator cooling coils; evaporator unit, fluid, transformer oil, gas, air blast, and dry and brine coolers, as well as remote condensers; and coatings to protect against corrosion. In addition, the company offers powertrain cooling products, including engine cooling modules, radiators, charge air coolers, condensers, oil coolers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, charge air, and intake air coolers; auxiliary cooling products, such as transmission and retarder oil coolers, and power steering coolers; and complete battery thermal management systems and electronics cooling packages. It serves heating, ventilation, and cooling OEMs; construction architects and contractors; wholesalers of heating equipment; automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; and commercial and industrial equipment OEMs. The company has operations in North America, South America, Europe, and Asia. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

How the Company Makes Money

Modine generates revenue through the design, manufacture, and sale of a wide range of thermal management products and solutions. The company's key revenue streams include sales from its vehicular thermal management products to automotive and commercial vehicle manufacturers, HVAC systems for commercial and industrial applications, and heat transfer products for refrigeration and data centers. Modine also benefits from strategic partnerships and long-term supply agreements with major OEMs in the automotive and HVAC industries, which provide stable and recurring income. Additionally, the company's global footprint allows it to capitalize on growth opportunities in emerging markets, contributing to its earnings.

Modine Financial Statement Overview

Summary

Modine displays strong financial performance across all verticals. The company exhibits healthy revenue growth and profitability metrics, a stable balance sheet with moderate leverage, and impressive cash flow generation. These factors collectively suggest a well-managed financial strategy, positioning Modine as a resilient player in the vehicles industry.

Income Statement

Modine's income statement shows strong profitability and growth. The gross profit margin for TTM (Trailing-Twelve-Months) is 24.2%, and the net profit margin is 6.3%. Revenue growth is robust with a 5.5% increase from the previous annual report. EBIT margin stands at 10.8%, and EBITDA margin at 12.9%, indicating efficient operations and solid earnings before interest and taxes.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.39, indicating moderate leverage. Return on equity (ROE) for TTM is 18.7%, showing efficient use of equity to generate profits. The equity ratio is 46.7%, suggesting a healthy reliance on equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals strong cash generation with a free cash flow growth rate of 21.6%. The operating cash flow to net income ratio is 1.24, indicating robust cash conversion from earnings. Free cash flow to net income ratio is 0.96, demonstrating effective cash management and reinvestment capabilities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.54B	2.41B	2.30B	2.05B	1.81B	1.98B
	Gross Profit
615.00M	525.60M	389.40M	309.30M	293.40M	307.50M
	EBIT
274.10M	240.70M	150.40M	92.10M	80.30M	53.10M
	EBITDA
347.50M	294.80M	208.00M	147.80M	-31.30M	132.60M
	Net Income Common Stockholders
160.20M	161.50M	153.10M	85.20M	-209.50M	-2.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.90M	60.10M	67.10M	45.20M	37.80M	70.90M
	Total Assets
840.25M	1.85B	1.57B	1.43B	1.28B	1.54B
	Total Debt
139.20M	509.00M	352.70M	377.80M	334.50M	482.40M
	Net Debt
95.54M	448.90M	285.60M	332.60M	296.70M	411.50M
	Total Liabilities
516.17M	1.10B	966.30M	968.90M	920.60M	1.04B
	Stockholders Equity
324.09M	747.60M	599.60M	458.10M	356.10M	493.60M
Cash Flow		Free Cash Flow
97.10M	126.10M	56.80M	-28.80M	117.10M	-13.40M
	Operating Cash Flow
198.10M	214.60M	107.50M	11.50M	149.80M	57.90M
	Investing Cash Flow
-288.00M	-283.40M	-50.40M	-51.00M	-31.30M	-60.50M
	Financing Cash Flow
27.70M	62.70M	-33.30M	39.20M	-145.10M	33.30M

Modine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOD, the sentiment is Negative. The current price of 76.65 is below the 20-day moving average (MA) of 81.66, below the 50-day MA of 85.86, and below the 200-day MA of 111.03, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 22.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MOD.

Modine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOD	73 Outperform	$4.07B	25.78	20.25%	―	4.87%	-29.43%
VC	70 Outperform	$1.82B	6.94	24.17%	―	-2.23%	-42.94%
LEA	64 Neutral	$4.09B	8.51	10.81%	4.04%	-0.70%	-7.27%
BWA	62 Neutral	$5.91B	17.88	6.46%	1.71%	-11.10%	-46.32%
Sector *	59 Neutral	$11.38B	10.18	-0.84%	4.04%	1.25%	-16.04%
GTX	54 Neutral	$1.78B	6.91	-41.90%	0.69%	-10.58%	―
GT	50 Neutral	$2.58B	40.07	1.49%	―	-5.92%	―

Modine Corporate Events

Modine Announces Leadership Change in Performance Technologies

On February 26, 2025, Modine announced that Adrian I. Peace will step down from his role as President of Performance Technologies, with his employment ending on September 30, 2025. During the interim, Neil Brinker, the company’s President and CEO, will oversee the segment. Modine plans to search for Peace’s successor while continuing its strategy to enhance the Performance Technologies segment’s growth and profitability. The company aims to achieve adjusted EBITDA margins of 15% to 18% over the next two years, leveraging its 80/20 discipline to maintain its strategic trajectory.