One-glance verdict
Overvalued
$37.87 our estimate vs market $189.30
Wall Street consensus: $310.29 (719.4% higher than our fair-value estimate)
400% above our estimate, beyond the bull case
Fundamentals snapshot
Modine Manufacturing Company
MOD · NYQ · Consumer Cyclical · Auto Parts
Current price
$189.30
52-week range
$111.18 - $323.25
Market cap
$10.05B
Balance sheet
Watch
11.74x Adequate
Net debt $576.10M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 6.0% last year.
- Reward Returns 13.1% on equity, ahead of 50% of its peers.
- Risk Stock trades 69.1% above its 5-year average P/E.
- Risk Net debt grew 27.0% over 3 years.
What this company does
Modine Manufacturing Company
Modine Manufacturing makes specialized heating and cooling systems for other businesses, not everyday consumers. The company's money comes from selling products that prevent overheating in everything from massive data centers (the physical buildings that power the internet) to the engines and batteries in vehicles. This matters because as the world's demand for data and electric cars grows, the need for Modine's essential cooling technology is likely to grow as well.
How the company got here
Modine began in 1916 when its founder, Arthur Modine, invented a new type of radiator for farm tractors. [5] The company's success grew by making radiators for early cars, like the Ford Model T, and for military vehicles during World War II. [4, 8] Over many decades, Modine expanded beyond just vehicles, creating heating systems for buildings and acquiring other companies to grow its technology and reach in Europe and other parts of the world. [4, 5] This history of working with heat transfer technology has allowed it to evolve from a simple radiator maker into a broader company that manages heating and cooling for many different industries. [1]
What it actually does
Modine is a thermal management company, which is a technical way of saying it makes products that control temperature. [2] Think of the radiator in a car that keeps the engine from overheating, the large heating units in a warehouse, or the complex cooling systems that keep a data center (the buildings that power the internet) from getting too hot. [1, 16] Modine designs and builds these critical heating and cooling components for a wide variety of customers and applications around the world. [11] Essentially, if a machine or a large building needs a specialized solution to manage its temperature, Modine likely makes a product for it. [3]
Climate Solutions
This is Modine's largest business segment, making up more than half of its sales. [18] It creates heating, ventilation, and air conditioning (HVAC) products for large buildings like schools, warehouses, and stores. [3, 16] A fast-growing and very important part of this segment is providing highly specialized cooling systems for data centers, which need to be kept at precise temperatures to run properly. [1, 14] Customers are typically building contractors, facility owners, and the large tech companies that operate data centers. [18]
Performance Technologies
This segment is the company's original foundation and focuses on managing heat in vehicles and heavy equipment. [1] It builds things like radiators, engine coolers, and battery cooling systems for commercial trucks, buses, and off-highway vehicles used in construction and farming. [3, 16] The customers are the large manufacturers who build these vehicles and need specialized components to make their engines and batteries work efficiently. [18] While still a significant part of the company, it is a smaller piece of the business compared to Climate Solutions. [1, 18]
What management is betting on now
The company's leadership is focusing its efforts and money on the Climate Solutions business, especially the part that serves data centers. [1, 12] This is because the demand for data centers is growing rapidly, and these specialized cooling systems have higher margins (the amount of profit made on each sale). [1, 14] They are also investing in products that help their customers be more energy-efficient and reduce emissions, aligning with global trends. [13, 15] This strategy involves shifting away from some of the lower-profit vehicle-related businesses to concentrate on what they see as the most promising growth areas. [1]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$43.80M
FY2025 Q3
$44.70M
FY2025 Q4
$27.10M
FY2026 Q1
$200.00K
FY2026 Q2
$-30.50M
FY2026 Q3
$-17.10M
FY2026 Q4
$152.80M
FY2027 Q1
$-5.00M
Revenue
$874.10M
Net income
$73.90M
Diluted EPS
1.37
Operating cash flow
$41.40M
Free cash flow
$-5.00M
Fetching…
Sources
Revenue
$954.40M
Net income
$73.30M
Diluted EPS
1.38
Operating cash flow
$194.90M
Free cash flow
$152.80M
Fetching…
Sources
Revenue
$805.00M
Net income
$-47.40M
Diluted EPS
-0.90
Operating cash flow
$24.70M
Free cash flow
$-17.10M
Fetching…
Sources
Revenue
$738.90M
Net income
$44.40M
Diluted EPS
0.83
Operating cash flow
$1.40M
Free cash flow
$-30.50M
Fetching…
Sources
Revenue
$682.80M
Net income
$51.20M
Diluted EPS
0.95
Operating cash flow
$27.70M
Free cash flow
$200.00K
Fetching…
Sources
Revenue
$647.20M
Net income
$49.60M
Diluted EPS
0.92
Operating cash flow
$54.80M
Free cash flow
$27.10M
Fetching…
Sources
Revenue
$616.80M
Net income
$41.00M
Diluted EPS
0.76
Operating cash flow
$60.70M
Free cash flow
$44.70M
Fetching…
Sources
Revenue
$658.00M
Net income
$46.10M
Diluted EPS
0.86
Operating cash flow
$57.30M
Free cash flow
$43.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $37.87 vs current price $189.30
Wall Street consensus is the average analyst price target: $310.29 (719.4% higher than our fair-value estimate).
Our most-likely fair value is $37.87 a share — about 80.0% below today's price of $189.30, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $576.1M. Interest coverage 11.7x.
Net debt
$576.10M
Interest coverage
11.74x
Modine Manufacturing Company's profit covers its interest bill about 11.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
MOD
BASELINE
Modine Manufacturing Company
Total debt $671.40M Interest coverage 11.74x This is the baseline the peer rows are being compared against.
Total debt $2.02B Interest coverage 22.70x +93% vs MOD Carries about 1.9x more debt cushion than MOD.
Total debt $4.06B Interest coverage 13.36x +14% vs MOD Has roughly the same debt cushion as MOD.
Total debt $452.08M Interest coverage 8.59x -27% vs MOD Carries about 1.4x less debt cushion than MOD.
Total debt $1.50B Interest coverage 1.18x -90% vs MOD Carries about 10.0x less debt cushion than MOD.
Total debt $325.08M Interest coverage 7.05x -40% vs MOD Carries about 1.7x less debt cushion than MOD.
What you should know
The case for and against MOD
3 Rewards
3 Risks
Rewards
-
Revenue grew 6.0% last year.
-
Returns 13.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 69.1% above its 5-year average P/E.
-
Net debt grew 27.0% over 3 years.
-
Insider ownership is only 2.0% (peer median: 2.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
66.65x
Forward P/E
17.20x
P/B
8.37x
P/S
2.98x
EV/EBITDA
23.66x
PEG ratio
0.63x
Profitability
How much profit each dollar creates
Gross margin
22.2%
Operating margin
9.0%
Net margin
4.3%
ROE
13.1%
ROA
9.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.55x
Current ratio
2.04x
Quick ratio
1.11x
Total debt
$671.40M
Total cash
$95.30M
Growth
How the business has been compounding
Revenue TTM
$3.37B
Revenue 5Y CAGR
11.6%
EPS TTM
2.84
EPS 5Y CAGR
-8.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$262.40M
Free CF TTM
$105.40M
FCF margin
3.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2008-11-19