Modine (MOD) AI Stock Analysis

• Market Cap: $7.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 2.16
• Revenue Growth: 6.45%
• EPS Growth: 14.21%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 1.06
• Shares Outstanding: 52,490,230
• 10 Day Avg. Volume: 622,413
• 30 Day Avg. Volume: 1,093,873
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 8.97
• Enterprise Value/Ebitda: 17.03
• 1Y Price Target: $160.60
• Price Target Upside: 18.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: $153.00 ▲(13.17% Upside)

Modine's overall stock score reflects strong financial performance and positive earnings call sentiment, supported by strategic growth initiatives. Technical indicators are favorable, though valuation suggests a premium pricing. The company's strategic focus on expanding its Climate Solutions and Data Center segments positions it well for future growth, despite challenges in the Performance Technologies segment.

Positive Factors

Financial Performance

MOD reported F1Q26 sales, adj. op. profit/EBITDA/EPS all nicely above the analyst's model.

Revenue Growth

Modine shares appreciated after management laid out a realistic path to the data center business generating about $2 billion in revenue in fiscal 2028.

Negative Factors

European Market

Weakness in the European Data Center Market is offset by North American strength.

Market Outlook

Shares declined on Fiscal 2026 Outlook.

Performance Technologies

A decline in performance technologies businesses and about $10 million to $15 million came out of genset revenue expectations.

Modine Business Overview & Revenue Model

Company Description

Modine Manufacturing Company (MOD) is a global leader in thermal management technology, specializing in the design and manufacturing of heating and cooling solutions for various sectors including automotive, industrial, commercial, and energy. The company offers a broad range of products such as radiators, heat exchangers, and HVAC systems that enhance efficiency and reduce emissions. Modine operates through multiple segments, focusing on providing innovative solutions that meet the needs of its diverse customer base worldwide.

How the Company Makes Money

Modine generates revenue primarily through the sale of its thermal management products and systems across various industries. The company has a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs), aftermarket sales, and service contracts. Key revenue streams are derived from the automotive sector, where Modine supplies heat exchangers and cooling systems, as well as from industrial applications, where it provides customized heat management solutions. Additionally, Modine benefits from strategic partnerships with major manufacturers and suppliers, enhancing its market presence and driving sales. The company also invests in research and development to innovate and expand its product offerings, which can lead to increased market share and revenue growth.

Modine Financial Statement Overview

Summary

Modine's financial performance is strong, with robust revenue growth and profitability. The income statement shows a healthy gross profit margin of 24.83% and a net profit margin of 7.21%. The balance sheet is solid with a moderate debt-to-equity ratio of 0.52, and cash flow metrics indicate effective cash management. Overall, Modine demonstrates a well-managed financial position with potential for future growth.

Income Statement

Modine has shown strong revenue growth with a consistent positive trend over the past years, increasing from $2.05 billion in 2022 to $2.6 billion TTM. The gross profit margin is healthy at 24.83% TTM, reflecting efficient production cost management. The net profit margin is also robust at 7.21% TTM, indicating solid profitability. EBIT and EBITDA margins are strong at 10.93% and 13.07% TTM, respectively, showing the company's operational efficiency. Overall, the income statement reflects a well-managed and growing company in the Auto - Parts industry.

Balance Sheet

The balance sheet is solid, with a debt-to-equity ratio of 0.52 TTM, indicating moderate leverage. The equity ratio stands at 45.71% TTM, signifying a stable capital structure. Return on equity (ROE) is impressive at 18.44% TTM, showcasing efficient use of shareholders' equity to generate profit. Despite the positive metrics, the company should monitor its total debt levels to maintain financial flexibility.

Cash Flow

Modine demonstrates strong cash flow positions, with a free cash flow growth rate of 10.83% TTM, indicating effective cash management. The operating cash flow to net income ratio is 1.07 TTM, reflecting a healthy conversion of income to cash. The free cash flow to net income ratio is at 0.76 TTM, showing good cash generation after capital expenditures. These metrics highlight the company's ability to generate cash and support growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.60B	2.58B	2.41B	2.30B	2.05B	1.81B
Gross Profit	646.60M	643.80M	525.60M	389.40M	309.30M	293.40M
EBITDA	340.60M	358.10M	294.80M	208.00M	171.90M	-31.30M
Net Income	187.90M	184.00M	161.50M	153.10M	85.20M	-209.50M
Balance Sheet
Total Assets	2.23B	1.92B	1.85B	1.57B	1.43B	1.28B
Cash, Cash Equivalents and Short-Term Investments	124.50M	71.60M	60.10M	70.60M	48.90M	37.80M
Total Debt	527.10M	350.80M	509.00M	413.40M	431.70M	390.50M
Total Liabilities	1.21B	999.40M	1.10B	966.30M	968.90M	920.60M
Stockholders Equity	1.02B	910.20M	747.60M	599.60M	458.10M	348.70M
Cash Flow
Free Cash Flow	143.30M	129.30M	126.10M	56.80M	-28.80M	117.10M
Operating Cash Flow	200.50M	213.30M	214.60M	107.50M	11.50M	149.80M
Investing Cash Flow	-204.10M	-86.60M	-283.40M	-50.40M	-51.00M	-31.30M
Financing Cash Flow	53.30M	-113.60M	62.70M	-33.30M	39.20M	-145.10M

Modine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135.19
• 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 Positive. The current price of 135.19 is below the 20-day moving average (MA) of 137.83, above the 50-day MA of 119.03, and above the 200-day MA of 105.58, indicating a neutral trend. The MACD of 4.20 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MOD.

Modine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APTV	79 Outperform	$17.52B	13.33	15.52%	―	-2.47%	-43.12%
MOD	77 Outperform	$7.14B	38.97	20.88%	―	6.45%	14.21%
LEA	76 Outperform	$5.87B	12.89	9.51%	2.84%	-3.12%	-8.23%
DORM	76 Outperform	$4.96B	22.12	17.38%	―	6.76%	34.97%
ALSN	74 Outperform	$7.46B	10.13	47.08%	1.19%	2.70%	15.17%
BWA	67 Neutral	$9.49B	46.82	3.66%	1.14%	-2.12%	-69.42%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%

Modine Corporate Events

Modine Elects New Directors and Approves Key Votes

On August 21, 2025, Modine Manufacturing Company held a shareholder vote to elect Neil D. Brinker, Katherine C. Harper, David J. Wilson, and Mark Bendza as directors until the 2028 Annual Meeting. The shareholders also approved the advisory vote on executive officer compensation and ratified the appointment of KPMG as the independent registered public accounting firm.

Modine Appoints Alan S. Lowe to Board

On July 18, 2025, Modine Manufacturing Company appointed Alan S. Lowe to its Board of Directors, effective immediately, with a term ending in 2026. Lowe, who has extensive executive experience in technology and manufacturing sectors, is expected to contribute significantly to Modine’s ongoing transformation efforts.

Modine Secures New Credit Agreement for Financial Flexibility

On July 10, 2025, Modine Manufacturing Company entered into a Sixth Amended and Restated Credit Agreement, which extends its existing credit facilities and introduces a $400 million revolving credit facility and a $200 million term loan facility, both maturing on July 10, 2030. This agreement includes revised covenants and restructuring provisions, reflecting Modine’s strategic focus on financial flexibility and operational restructuring, particularly concerning its Performance Technologies segment’s automotive business exit.

Modine Acquires Climate by Design International

Modine Manufacturing Company recently acquired Climate by Design International (CDI), a leading designer and manufacturer of desiccant-based dehumidification equipment. This acquisition, completed on July 1, 2025, is part of Modine’s strategic initiative to enhance its product offerings and market reach. The acquisition is expected to be accretive to earnings per share and aligns with Modine’s goal to expand its comprehensive commercial indoor air quality portfolio. The company has also restructured its product groups within its Performance Technologies and Climate Solutions segments, although this will not affect financial reporting.