Modine (MOD) AI Stock Analysis

• Market Cap: $4.74B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 2.23
• Revenue Growth: 4.87%
• EPS Growth: -29.43%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 2.97
• Shares Outstanding: 52,574,000
• 10 Day Avg. Volume: 1,045,409
• 30 Day Avg. Volume: 1,225,896
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.64
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $142.50
• Price Target Upside: 57.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Modine demonstrates strong financial performance and a positive earnings call outlook, particularly in its Climate Solutions and data center segments. However, the stock's technical indicators suggest caution, and its valuation is relatively high, which may limit upside potential. Continued strategic growth and strong financial management position Modine well, but challenges in certain segments and market conditions should be monitored.

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's financial performance is robust, with strong profitability and growth metrics. The company shows healthy revenue growth, efficient operations, and solid earnings. The balance sheet indicates moderate leverage with strong equity utilization, and cash flows are impressive with excellent cash conversion and management.

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

Modine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOD, the sentiment is Neutral. The current price of 90.21 is above the 20-day moving average (MA) of 77.88, above the 50-day MA of 80.92, and below the 200-day MA of 109.16, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 93.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOD.

Modine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	77 Outperform	$1.84B	6.94	25.15%	―	-1.35%	-39.06%
MOD	73 Outperform	$4.74B	30.34	20.25%	―	4.87%	-29.43%
LEA	69 Neutral	$4.65B	9.68	10.81%	3.55%	-0.70%	-7.27%
GTX	66 Neutral	$2.20B	8.63	-41.90%	0.55%	-10.58%	―
BWA	65 Neutral	$5.75B	17.42	6.46%	1.50%	-11.11%	-46.32%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
GT	50 Neutral	$3.14B	45.63	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.