Modine (MOD) AI Stock Analysis

• Market Cap: $7.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 39.8
• Beta (1Y): 2.21
• 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: 1,421,202
• 30 Day Avg. Volume: 1,243,014
• 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: 1.14
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 12.76
• Enterprise Value/Ebitda: 23.38
• 1Y Price Target: $186.60
• Price Target Upside: 35.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.67
• Revenue Forecast (FY): $3.03B

• Rating: 68 Neutral
• Price Target: $152.00 ▲(10.43% Upside)

Modine's overall stock score reflects strong financial performance and positive earnings call insights, tempered by technical indicators suggesting bearish momentum and valuation concerns due to a high P/E ratio. The decline in free cash flow and temporary margin erosion are risks that need monitoring.

Positive Factors

Revenue Growth

Strong revenue growth outlook indicates robust demand and effective strategic positioning, enhancing long-term market competitiveness.

Strategic Expansion

The new facility expands data center cooling capacity, supporting digital infrastructure growth and creating jobs, strengthening Modine's market position.

Climate Solutions Growth

Significant growth in Climate Solutions reflects successful strategic investments and increasing demand for energy-efficient technologies.

Negative Factors

Free Cash Flow Decline

Negative free cash flow due to inventory builds and capital expenditures may strain financial flexibility and limit investment capacity.

Temporary Margin Erosion

Temporary margin erosion from expansion costs could pressure profitability, requiring careful cost management to maintain margins.

Performance Technologies Challenges

Revenue decline in Performance Technologies indicates market challenges, potentially affecting overall growth and segment profitability.

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: Negative
• Last Price: 137.64
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 137.64 is below the 20-day moving average (MA) of 150.24, below the 50-day MA of 150.15, and above the 200-day MA of 119.02, indicating a neutral trend. The MACD of -4.04 indicates Positive momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 28.55 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
DORM	75 Outperform	$3.84B	15.63	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$6.07B	14.33	8.96%	2.63%	-1.90%	-13.86%
ALSN	71 Outperform	$8.36B	12.30	40.38%	1.07%	-4.21%	-0.45%
APTV	70 Outperform	$16.50B	60.63	3.25%	―	2.16%	-85.91%
MOD	68 Neutral	$7.25B	39.78	19.47%	―	8.10%	13.52%
BWA	65 Neutral	$9.66B	72.38	2.24%	1.24%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Modine Corporate Events

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.

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.