Quality Investor

Modine Manufacturing Company

Rank #265Hypergrowth

MOD · NYSE · Consumer Cyclical

Modine Manufacturing Company (MOD) — Rank #265 by gross profitability (GP/assets 0.26) · ROE 10.1% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000067347 · all metrics point-in-time as of the filing date.

About

Modine Manufacturing Company designs, engineers, tests, manufactures, and sells mission-critical thermal solutions in the United States, Canada, Italy, Hungary, the United Kingdom, China, and internationally.

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It offers heat transfer products, including round tube plate fin construction; gas-fired, hydronic, electric, and oil fired unit heaters; roof-mounted direct- and indirect-fired makeup air units, duct furnaces, infrared units, and perimeter heating products; single packaged unit ventilators, modular chillers, air handler and condensing units, and ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. The company also provides data center products that consists of IT cooling solutions, including chillers, dry coolers, precision air handling units, computer room air conditioning, computer room air handler units, fan walls, rear-door heat exchangers, coolant distribution units, and immersion solutions, as well as sells replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, it offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, chillers, and condensers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services.

The company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

Industry
Auto Parts
Sector
Consumer Cyclical
State
WI
Filer Category
Large accelerated filer
Fiscal Year End
March 31
Website
modine.com

Price History

MOD+1435.3% · +72.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$9.43B

P/E (annual)

78.6

P/S (annual)

3.0

P/B

7.9

P/OCF (annual)

37.9

Shareholder Yield

-12.6%

Employees

13,000

Industry

Auto Parts

Exchange

NYSE

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
10.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.31
Current ratio
2.04×
Net cash
$87.20M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

1/2 pass
Revenue growth
112.6%
Piotroski F-Score
N/A
Share dilution
12.6%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

28.5%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 12.6% — per-share value needs a total required return of 41.1% once share-count change is priced in.

vs. own 6-year median revenue growth: -11.2%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

23.1%

r = 10% (base)

28.5%

r = 12%

33.3%

Net debt / market cap: -0.9%

Base FCF: $105.4M3Y mean FCF: $22.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
5.6xmed 24.9x93.2x

P / S

Price / revenue per share

0.1xCheap
0.1xmed 0.3x0.5x

P / B

Price / book value per share

0.6xCheap
0.6xmed 1.4x1.8x

P / GP

Price / gross profit per share

0.9xCheap
0.9xmed 2.1x3.1x

P / FCF

Price / free cash flow per share

N/A
13.0xmed 23.6x102.9x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

4th of 12 SIC 3714 peers

Return on equity

10.1%

Gross margin

23.0%

6th of 12 SIC 3714 peers

Revenue growth (YoY)

112.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2013201420152016
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

-7.4%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.31

7th of 11 SIC 3714 peers (best = lowest)

Current ratio

2.04×

6th of 12 SIC 3714 peers

Quick ratio

1.01×

Net cash

$87.20M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$105.40M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.13

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20112016
Decline
Value