Modine (MOD) AI Stock Analysis

• Market Cap: $9.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 8.10%
• EPS Growth: 13.52%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.19
• Shares Outstanding: 52,731,197
• 10 Day Avg. Volume: 1,180,834
• 30 Day Avg. Volume: 1,419,370
• PEG Ratio: 1.61
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 31.22
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 15.66
• Enterprise Value/Ebitda: 40.52
• 1Y Price Target: $244.67
• Price Target Upside: 27.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.89
• Revenue Forecast (FY): $3.15B

• Rating: 69 Neutral
• Price Target: $205.00 ▲(6.81% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is supported by a strong operational turnaround and upbeat, raised guidance driven by rapid Climate Solutions/data-center growth, but is held back by weaker recent cash flow/cash conversion and a very high valuation. Technically the trend is strong, though overbought indicators add near-term downside risk.

Positive Factors

Revenue & margin turnaround

Modine has produced a multi-year recovery: sustained revenue growth and material margin expansion indicate durable operational improvement. Better mix, pricing and cost control boost recurring profitability, supporting reinvestment in capacity and product development without relying solely on cyclical end-market rebounds.

Data‑center growth and product leadership

Rapid, high-value data-center wins and clear multi-year targets create a structural growth runway. Combined with a new 3MW turbo chiller platform and capacity builds, the business shifts toward higher-margin, technology-differentiated products that strengthen customer ties and reduce reliance on commodity components.

Improved liquidity and leverage flexibility

An enlarged revolver and improved covenant flexibility increase funding optionality for capex, working capital, and strategic transactions. Coupled with materially lower leverage ratios versus earlier years, this reduces refinancing risk and supports the multi-year investment plan needed for chiller capacity and data‑center growth.

Negative Factors

Weakened cash conversion

Cash generation has recently softened as working capital and elevated CapEx absorb earnings, reducing free cash conversion. If cash conversion does not normalize, the company’s ability to fund capacity expansions, pay down debt, or weather demand volatility could be constrained, increasing long-term financing risk.

Rising net debt & pension cash impacts

Net debt has grown materially year-over-year and pension cash payments added near-term outflows. Elevated debt plus one-time and ongoing pension cash demands raise refinancing and liquidity sensitivity during an investment-heavy phase, potentially limiting flexibility if operating cash flow underperforms.

Spin‑off execution & leadership transition risk

A proposed spin-off and combination introduces regulatory, shareholder and integration execution risk. Coupled with the announced Climate Solutions president retirement, these changes could disrupt continuity, distract management from operations, and jeopardize expected synergies or OEM relationships if transitions are mishandled.

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 primarily through the sale of its thermal management products and systems across various sectors. Key revenue streams include the sale of heat exchangers and cooling systems for the automotive industry, which is a significant contributor to its earnings. Additionally, Modine earns revenue from its HVAC and industrial segment, providing solutions for commercial buildings and manufacturing processes. The company also benefits from strategic partnerships with major automotive manufacturers and other industrial players, which enhance its market reach and product development capabilities. Factors such as increasing demand for energy-efficient solutions and regulatory support for sustainable technologies further contribute to Modine's earnings.

Modine Financial Statement Overview

Summary

Strong multi-year turnaround with higher revenue and materially improved margins, but the latest TTM shows weaker net income versus FY2025 and softer cash conversion/free cash flow, alongside higher TTM debt dollars.

Income Statement

Results show a strong multi-year turnaround and improving profitability. Revenue rose from $1.81B (FY2021) to $2.58B (FY2025 annual) and $2.87B in TTM (Trailing-Twelve-Months), with positive growth in the most recent period. Margins expanded meaningfully versus earlier years (EBITDA margin improved from negative in FY2021 to ~13% in TTM), and gross margin also strengthened (about 17% in FY2023 to ~24% in TTM). The key weakness is earnings quality/consistency: net income dropped to $97.8M in TTM from $184.0M in FY2025 annual, despite higher revenue, suggesting recent margin or cost pressure.

Balance Sheet

Leverage looks reasonable and improved materially from earlier years. Debt relative to equity moved down from ~0.96 (FY2021) and ~0.84 (FY2022) to ~0.49–0.55 in FY2025 annual and TTM (Trailing-Twelve-Months). Equity has grown alongside assets, and returns on equity are strong (~19–22% in FY2024–TTM), indicating solid profitability on the capital base. The main watch-out is debt dollars have increased in TTM ($615.8M) versus FY2025 annual ($449.4M), which can reduce flexibility if cash generation softens.

Cash Flow

Cash generation is positive but has recently weakened. Operating cash flow fell to $136.3M in TTM (Trailing-Twelve-Months) from $213.3M in FY2025 annual, and free cash flow declined to $49.2M with negative growth in TTM. Cash conversion is a notable concern: free cash flow is only ~40% of net income in TTM (vs ~61% in FY2025 annual), implying more earnings tied up in working capital or higher spending. A strength is the company has demonstrated the ability to generate meaningful free cash flow in recent annual periods (FY2023–FY2025), despite volatility earlier in the cycle.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.87B	2.58B	2.41B	2.30B	2.05B	1.81B
Gross Profit	684.00M	645.40M	527.20M	389.40M	309.30M	293.40M
EBITDA	264.30M	358.10M	294.80M	208.00M	171.90M	-31.30M
Net Income	97.80M	184.00M	161.50M	153.10M	85.20M	-210.70M
Balance Sheet
Total Assets	2.48B	1.92B	1.85B	1.57B	1.43B	1.28B
Cash, Cash Equivalents and Short-Term Investments	98.90M	71.60M	60.10M	70.60M	48.90M	37.80M
Total Debt	867.10M	530.00M	571.10M	462.30M	472.90M	435.30M
Total Liabilities	1.35B	999.40M	1.10B	966.30M	968.90M	920.60M
Stockholders Equity	1.12B	910.20M	747.60M	592.80M	450.70M	348.70M
Cash Flow
Free Cash Flow	7.40M	129.30M	126.10M	56.80M	-28.80M	117.10M
Operating Cash Flow	136.30M	213.30M	214.60M	107.50M	11.50M	149.80M
Investing Cash Flow	-307.60M	-86.60M	-283.40M	-50.40M	-51.00M	-31.30M
Financing Cash Flow	210.40M	-113.60M	62.70M	-33.30M	39.20M	-145.10M

Modine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 191.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 191.93 is below the 20-day moving average (MA) of 213.88, above the 50-day MA of 182.05, and above the 200-day MA of 144.14, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 23.28 is Neutral, 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
ALSN	74 Outperform	$9.34B	13.20	34.97%	1.07%	-4.21%	-0.45%
LEA	72 Outperform	$5.79B	14.06	8.79%	2.63%	-1.90%	-13.86%
MOD	69 Neutral	$9.94B	―	9.55%	―	8.10%	13.52%
DORM	65 Neutral	$3.10B	18.56	14.34%	―	7.94%	34.84%
BWA	62 Neutral	$10.47B	35.20	4.80%	1.24%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
APTV	54 Neutral	$15.00B	101.80	1.78%	―	2.16%	-85.91%

Modine Corporate Events

Modine Outlines SpinCo Spin-Off and Gentherm Combination

On February 17, 2026, Modine Manufacturing Company made available an investor presentation it plans to use in upcoming meetings with investors, outlining details of a proposed transaction involving Modine, a spin-off entity referred to as SpinCo, and Gentherm. The materials, to be filed with the U.S. Securities and Exchange Commission, will include registration and proxy statements necessary to facilitate a spin-off of SpinCo from Modine and its combination with Gentherm, a process that could reshape Modine’s portfolio and strategic focus while introducing execution, regulatory and integration risks for the companies and their shareholders.

The investor materials emphasize that completion of the proposed transaction remains subject to multiple closing conditions, including regulatory approvals and Gentherm shareholder consent, and highlight a wide range of potential uncertainties around timing, costs, anticipated synergies and the combined company’s future performance. If completed as envisioned, the deal structure is intended to unlock strategic benefits and cost synergies for Gentherm and the SpinCo business separated from Modine, but the companies caution that adverse developments, legal challenges or failure to retain key personnel could materially affect the outcome and the expected value for stakeholders.

The most recent analyst rating on (MOD) stock is a Buy with a $265.00 price target. To see the full list of analyst forecasts on Modine stock, see the MOD Stock Forecast page.

Modine Expands Revolving Credit Facility to Boost Liquidity

On December 23, 2025, Modine Manufacturing Company and its subsidiary Airedale International Air Conditioning amended their existing credit agreement to increase the aggregate revolving credit commitments by $150 million, from $400 million to $550 million, and revised the expansion feature to allow up to $250 million in future incremental revolving commitments and term loans. The amendment also grants Modine, under specified conditions and at its own expense, the right to compel a lender to assign and delegate its loans and commitments to an eligible replacement lender upon full payment of the outgoing lender, enhancing the company’s financing flexibility and potential access to additional liquidity for operational and strategic needs.

The most recent analyst rating on (MOD) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Modine stock, see the MOD Stock Forecast page.

Modine Announces Retirement of Climate Solutions President

On December 4, 2025, Modine Manufacturing Company announced the planned retirement of Eric S. McGinnis, President of Climate Solutions, effective June 30, 2026. During the transition period, McGinnis will continue in his role to ensure a smooth transition and will receive his regular compensation and benefits. The agreement includes provisions for the vesting of equity awards and pro rata payouts of performance stock awards, contingent on McGinnis’s continued employment and fulfillment of certain conditions.

The most recent analyst rating on (MOD) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Modine stock, see the MOD Stock Forecast page.