Modine Manufacturing Co (NYSE: MOD)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0000067347
Market Cap 11.46 Bn
P/B 10.22
P/E 117.21
P/S 3.99
ROIC (Qtr) 22.50
Div Yield % 0.00
Rev 1y % (Qtr) 30.51
Total Debt (Qtr) 615.80 Mn
Debt/Equity (Qtr) 0.55
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About

Modine Manufacturing Company, commonly known as Modine, is a prominent player in the thermal management industry, offering an extensive range of products and services. Established in 1916, Modine has built a reputation as a reliable brand, providing solutions for commercial, industrial, and building HVAC&R markets, as well as vehicular applications. Modine's primary business activities encompass designing, manufacturing, and distributing heat transfer products, HVAC&R systems, and vehicular components. These products find application in various...

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Investment thesis

Bull case

  • Healthy cash reserves of 98.70M provide 2.19x coverage of short-term debt 45.10M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.99B provides 3.23x coverage of total debt 615.80M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 108.60M provides exceptional 54.30x coverage of minority interest expenses 2M, showing strong core operations.
  • Retained earnings of 891.20M provide full 1.56x coverage of long-term debt 570.70M, indicating strong internal capital position.
  • Tangible assets of 1.99B provide robust 12.35x coverage of other current liabilities 160.80M, indicating strong asset backing.

Bear case

  • Operating cash flow of 108.60M barely covers its investment activities of (307.60M), with a coverage ratio of -0.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 98.70M against inventory of 542.90M, the 0.18 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 98.70M provide limited coverage of acquisition spending of (182.40M), which is -0.54x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 108.60M shows concerning coverage of stock compensation expenses of 23.80M, with a 4.56 ratio indicating potential earnings quality issues.
  • Free cash flow of (20.30M) provides weak coverage of capital expenditures of 128.90M, with a -0.16 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 79.05 Bn 31.82 4.53 8.40 Bn
2 AZO Autozone Inc 62.61 Bn 25.41 3.25 12.05 Bn
3 ALSN Allison Transmission Holdings Inc 21.28 Bn 43.99 10.65 2.40 Bn
4 MGA Magna International Inc 18.84 Bn 22.73 0.45 6.69 Bn
5 GPC Genuine Parts Co 18.74 Bn 27.28 1.22 6.40 Bn
6 APTV Aptiv PLC 18.21 Bn 110.36 0.89 7.95 Bn
7 BWA Borgwarner Inc 13.42 Bn 48.46 0.94 3.90 Bn
8 MOD Modine Manufacturing Co 11.46 Bn 117.21 3.99 0.62 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.82 1.25
EV to Cash from Ops. EV/CFO 110.14 14.01
EV to Debt EV to Debt 19.42 36.85
EV to EBIT EV/EBIT 65.01 21.23
EV to EBITDA EV/EBITDA 30.57 9.40
EV to Free Cash Flow [EV/FCF] EV/FCF -589.24 -2.78
EV to Market Cap EV to Market Cap 1.04 1.79
EV to Revenue EV/Rev 4.16 3.03
Price to Book Value [P/B] P/B 10.22 0.00
Price to Earnings [P/E] P/E 117.21 12.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.87
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 13.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.42
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.12
Interest Coverage Int. cover (Qtr) 6.50 -114.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -28.64 -15.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 17.78 20.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -35.67 35.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.83 -1.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -27.22 -6.91
EBT Growth (1y) % EBT 1y % (Qtr) -30.92 -105.73
EPS Growth (1y) % EPS 1y % (Qtr) -39.34 -467.53
FCF Growth (1y) % FCF 1y % (Qtr) -120.74 15.37
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.30 23.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.16 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.17 0.72
Current Ratio Curr Ratio (Qtr) 2.19 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.55 0.09
Interest Cover Ratio Int Coverage (Qtr) 6.50 -114.22
Times Interest Earned Times Interest Earned (Qtr) 6.50 -114.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.10 -988.62
EBIT Margin % EBIT Margin % (Qtr) 6.40 -1,028.09
EBT Margin % EBT Margin % (Qtr) 5.42 -1,019.44
Gross Margin % Gross Margin % (Qtr) 23.70 -124.68
Net Profit Margin % Net Margin % (Qtr) 3.40 -1,011.37