Modine (MOD) AI Stock Analysis

• Market Cap: $6.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 38.1
• Beta (1Y): 2.14
• Revenue Growth: 8.10%
• EPS Growth: 13.52%
• Country: US
• Employees: 11,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.06
• Shares Outstanding: 52,648,567
• 10 Day Avg. Volume: 1,824,870
• 30 Day Avg. Volume: 1,302,437
• 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: 1.25
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 12.76
• Enterprise Value/Ebitda: 23.38
• 1Y Price Target: $183.25
• Price Target Upside: 38.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.67
• Revenue Forecast (FY): $3.05B

• Rating: 62 Neutral
• Price Target: $127.00 ▼(-3.69% Downside)

The score reflects solid underlying fundamentals (profitability and ROE) and constructive growth guidance from the earnings call, offset by deteriorating cash flow and notably weak technical conditions (below key moving averages with bearish MACD). Valuation is also relatively rich at a 34.6 P/E, limiting upside confidence.

Positive Factors

Balance sheet strength

A moderate D/E and strong ROE indicate prudent leverage and efficient capital use, providing financial resilience. This structure supports multi-quarter investments in capacity and M&A without overburdening the balance sheet, preserving access to credit and flexibility through business cycles.

Stable profitability margins

Consistent revenue growth and healthy gross and operating margins reflect durable operational efficiency and pricing power in thermal management. Sustained margin profiles support reinvestment, product development, and the ability to weather cyclical demand in automotive and industrial end markets.

Climate Solutions growth and acquisitions

Rapid data center sales growth and recent acquisitions accelerate exposure to a secular, higher-growth market for energy-efficient cooling. Successful integration and expanded product lines create durable revenue diversification and scale benefits that can improve long-term margins and market share.

Negative Factors

Deteriorating free cash flow

A sharp drop in free cash flow and a negative quarter reflect heavy capex and working capital build tied to expansion. Persistent FCF weakness would constrain internal funding for growth, increase reliance on external financing, and reduce strategic flexibility across multiple quarters.

Margin pressure from capacity build

Large upfront hiring and training costs for capacity expansion create near-term margin dilution. If scale-up or productivity gains lag expectations, elevated operating costs could persist longer, delaying payback on investments and compressing sustained profitability over several quarters.

Weakness in Performance Technologies

A decline in a core segment signals structural demand weakness or competitive pressure in heavy-duty and on-highway markets. Continued softness would limit company-wide revenue resilience and put more pressure on Climate Solutions to carry growth, increasing execution risk across business units.

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

Modine shows strong revenue growth and profitability with stable margins and effective equity utilization. The balance sheet is sound with manageable leverage. However, a significant decline in free cash flow growth poses a potential risk.

Income Statement

Modine has demonstrated strong revenue growth with a 3.1% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 24.1% and a net profit margin of 6.9%. EBIT and EBITDA margins are also solid at 10.7% and 12.5%, respectively, indicating efficient operations and profitability. The consistent revenue growth and improving margins reflect a positive trajectory in the income statement.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.55, indicating a balanced approach to leveraging. Return on equity is robust at 19.4%, showcasing effective use of equity to generate profits. The equity ratio stands at 44.1%, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability with a prudent level of leverage.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 40.2% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.28, and the free cash flow to net income ratio is 0.40, indicating reasonable cash generation relative to net income. Despite the drop in free cash flow, the company maintains adequate cash flow coverage, but the decline warrants attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69B	2.58B	2.41B	2.30B	2.05B	1.81B
Gross Profit	647.50M	645.40M	527.20M	389.40M	309.30M	293.40M
EBITDA	353.30M	358.10M	294.80M	208.00M	171.90M	-31.30M
Net Income	186.20M	184.00M	161.50M	153.10M	85.20M	-210.70M
Balance Sheet
Total Assets	2.39B	1.92B	1.85B	1.57B	1.43B	1.28B
Cash, Cash Equivalents and Short-Term Investments	83.80M	71.60M	60.10M	67.10M	45.20M	37.80M
Total Debt	582.10M	449.40M	431.60M	352.70M	377.80M	334.50M
Total Liabilities	1.32B	999.40M	1.10B	966.30M	968.90M	920.60M
Stockholders Equity	1.05B	910.20M	747.60M	592.80M	450.70M	348.70M
Cash Flow
Free Cash Flow	69.20M	129.30M	126.10M	56.80M	-28.80M	117.10M
Operating Cash Flow	172.30M	213.30M	214.60M	107.50M	11.50M	149.80M
Investing Cash Flow	-281.70M	-86.60M	-283.40M	-50.40M	-51.00M	-31.30M
Financing Cash Flow	142.60M	-113.60M	62.70M	-33.30M	39.20M	-145.10M

Modine Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 131.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 131.86 is below the 20-day moving average (MA) of 132.02, below the 50-day MA of 142.58, and above the 200-day MA of 122.48, indicating a neutral trend. The MACD of -5.13 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 47.93 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
DORM	75 Outperform	$3.85B	16.03	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$6.48B	15.28	8.96%	2.63%	-1.90%	-13.86%
ALSN	72 Outperform	$8.99B	13.22	40.38%	1.07%	-4.21%	-0.45%
APTV	70 Outperform	$17.92B	65.59	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$10.29B	77.04	2.24%	1.24%	0.08%	-83.69%
MOD	62 Neutral	$6.58B	38.11	19.47%	―	8.10%	13.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Modine Corporate Events

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.

Modine Board Member Christopher Patterson to Retire

On November 10, 2025, Christopher W. Patterson, a member of Modine Manufacturing Company’s Board of Directors, announced his intention to retire from the board effective November 17, 2025, citing personal reasons. His departure will result in the reduction of the board’s size from eleven to ten members, and he did not express any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (MOD) stock is a Hold with a $138.00 price target. To see the full list of analyst forecasts on Modine stock, see the MOD Stock Forecast page.