Modine Manufacturing Co (NYSE: MOD)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0000067347
Market Cap 6.60 Bn
P/B 6.27
P/E 35.45
P/S 2.46
ROIC (Qtr) 12.51
Div Yield % 0.00
Rev 1y % (Qtr) 12.29
Total Debt (Qtr) 582.10 Mn
Debt/Equity (Qtr) 0.55

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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Price action

Investment thesis

Bull case

  • Operating cash flow of 144.60M provides exceptional 90.38x coverage of minority interest expenses 1.60M, showing strong core operations.
  • Strong tangible asset base of 1.89B provides 3.24x coverage of total debt 582.10M, indicating robust asset backing and low credit risk.
  • Retained earnings of 938.60M provide full 1.79x coverage of long-term debt 525.80M, indicating strong internal capital position.
  • Cash position of 83.80M provides exceptional 52.38x coverage of minority interest expenses 1.60M, indicating strong liquidity.
  • Tangible assets of 1.89B provide robust 10.86x coverage of other current liabilities 173.80M, indicating strong asset backing.

Bear case

  • Operating cash flow of 144.60M barely covers its investment activities of (281.70M), with a coverage ratio of -0.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 83.80M against inventory of 528.80M, the 0.16 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 83.80M provide limited coverage of acquisition spending of (182.10M), which is -0.46x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 41.50M provides weak coverage of capital expenditures of 103.10M, with a 0.40 ratio suggesting additional external financing needs for growth initiatives.
  • High depreciation of 77.30M relative to operating cash flow of 144.60M, which is 0.53x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2025)

Geographical 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 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.94 1.16
EV to Cash from Ops. EV/CFO 48.43 9.30
EV to Debt EV to Debt 12.03 34.64
EV to EBIT EV/EBIT 25.52 4.45
EV to EBITDA EV/EBITDA 19.44 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 168.76 17.25
EV to Market Cap EV to Market Cap 1.06 1.58
EV to Revenue EV/Rev 2.61 3.42
Price to Book Value [P/B] P/B 6.27 -0.33
Price to Earnings [P/E] P/E 35.45 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) 10.72 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1.28 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 6.62 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.13 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.62 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 8.42 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) 10.04 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 13.14 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) -58.42 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.33 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.13 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.13 0.69
Current Ratio Curr Ratio (Qtr) 2.00 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.55 0.22
Interest Cover Ratio Int Coverage (Qtr) 10.72 -110.44
Times Interest Earned Times Interest Earned (Qtr) 10.72 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.10 -952.44
EBIT Margin % EBIT Margin % (Qtr) 10.22 -997.37
EBT Margin % EBT Margin % (Qtr) 9.26 -987.56
Gross Margin % Gross Margin % (Qtr) 24.00 -122.43
Net Profit Margin % Net Margin % (Qtr) 6.90 -979.78