Modine (MOD) AI Stock Analysis

• Market Cap: $8.45B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 2.17
• 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: 992,968
• 30 Day Avg. Volume: 1,093,949
• 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: 0.98
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 12.76
• Enterprise Value/Ebitda: 23.38
• 1Y Price Target: $186.60
• Price Target Upside: 18.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.66
• Revenue Forecast (FY): $3.02B

• Rating: 70 Outperform
• Price Target: $167.00 ▲(6.06% Upside)

Modine's overall stock score reflects strong financial performance and promising growth prospects, particularly in the Climate Solutions segment. However, concerns about valuation, temporary margin erosion, and negative free cash flow weigh on the score. Technical indicators suggest a cautious approach due to mixed signals.

Positive Factors

Revenue Growth

Modine's projected 15%-20% revenue growth for FY26, driven by strong demand in Climate Solutions, indicates robust market positioning and strategic execution.

Strategic Expansions

Expanding manufacturing capacity in the U.S. for data center products positions Modine to meet growing demand, supporting long-term revenue and market share growth.

Strong Financial Performance

Modine's strong financial metrics, including revenue growth and cash flow generation, highlight its operational efficiency and ability to invest in future growth.

Negative Factors

Temporary Margin Erosion

The temporary margin erosion due to high costs for expansion could impact short-term profitability, although it's a strategic investment for future growth.

Free Cash Flow Negativity

Negative free cash flow, driven by inventory builds and capital expenditures, may strain liquidity and limit financial flexibility in the near term.

Challenges in Performance Technologies

The revenue decline in Performance Technologies suggests market challenges that could affect segment profitability and require strategic adjustments.

Modine Business Overview & Revenue Model

Company Description

Modine Manufacturing Company (MOD) is a global leader in thermal management technology, providing innovative solutions across a range of sectors including HVAC (heating, ventilation, and air conditioning), transportation, and industrial applications. The company specializes in the design and manufacture of heat exchangers, radiators, and other heat transfer products, catering to a diverse clientele that includes automotive, commercial, and industrial markets. Modine's commitment to sustainability and energy efficiency positions it as a key player in the growing demand for environmentally friendly heating and cooling solutions.

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: Positive
• Last Price: 157.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 157.46 is above the 20-day moving average (MA) of 148.20, above the 50-day MA of 150.02, and above the 200-day MA of 114.56, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 87.90 is Negative, 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
DORM	75 Outperform	$3.95B	16.07	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$5.59B	13.20	8.96%	2.82%	-1.90%	-13.86%
BWA	72 Outperform	$9.16B	68.61	2.24%	1.30%	0.08%	-83.69%
MOD	70 Outperform	$8.45B	46.38	19.47%	―	8.10%	13.52%
ALSN	69 Neutral	$7.43B	10.94	40.38%	1.21%	-4.21%	-0.45%
APTV	64 Neutral	$16.74B	61.52	3.25%	―	2.16%	-85.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Modine Corporate Events

Modine Manufacturing’s Earnings Call Highlights Growth and Challenges

Modine Manufacturing’s recent earnings call painted a picture of robust growth tempered by some operational challenges. The overall sentiment was positive, driven by significant revenue increases in the Climate Solutions segment, particularly in data center products. However, this optimism was somewhat offset by temporary margin erosion due to high costs associated with hiring and training, ongoing challenges in the Performance Technologies segment, and negative cash flow for the quarter.

Modine Manufacturing Reports Strong Q2 Revenue Growth

Modine Manufacturing, a global leader in thermal management technology, operates in the Climate Solutions and Performance Technologies sectors, focusing on heating, cooling, and ventilation solutions to improve air quality and reduce energy consumption.

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.

The most recent analyst rating on (MOD) stock is a Buy with a $159.00 price target. To see the full list of analyst forecasts on Modine stock, see the MOD Stock Forecast page.