Modine Manufacturing Stock To $124?
Modine Manufacturing (MOD) stock has jumped 20% during the past day, and is currently trading at $176.72. Our multi-factor assessment suggests that it may be time to sell MOD stock. We have, overall, a pessimistic view of the stock, and a price of $124 may not be out of reach. We believe there is a near-equal mix of good and bad in MOD stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Moderate |
| Profitability | Weak |
| Financial Stability | Strong |
| Downturn Resilience | Very Weak |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $9.3 Bil in market cap, Modine Manufacturing provides engineered heat transfer systems and components for on- and off-highway OEM vehicular applications, serving building HVAC, heavy-duty equipment, and automotive markets globally.
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[1] Valuation Looks Very High
| MOD | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 3.5 | 3.4 |
| Price-to-Earnings Ratio | 50.0 | 24.1 |
| Price-to-Free Cash Flow Ratio | 224.4 | 21.4 |
This table highlights how MOD is valued vs broader market. For more details see: MOD Valuation Ratios
[2] Growth Is Moderate
- Modine Manufacturing has seen its top line grow at an average rate of 7.0% over the last 3 years
- Its revenues have grown 8.1% from $2.5 Bil to $2.7 Bil in the last 12 months
- Also, its quarterly revenues grew 12.3% to $739 Mil in the most recent quarter from $658 Mil a year ago.
| MOD | S&P 500 | |
|---|---|---|
| 3-Year Average | 7.0% | 5.6% |
| Latest Twelve Months* | 8.1% | 6.2% |
| Most Recent Quarter (YoY)* | 12.3% | 7.3% |
This table highlights how MOD is growing vs broader market. For more details see: MOD Revenue Comparison
[3] Profitability Appears Weak
- MOD last 12 month operating income was $313 Mil representing operating margin of 11.7%
- With cash flow margin of 5.4%, it generated nearly $145 Mil in operating cash flow over this period
- For the same period, MOD generated nearly $186 Mil in net income, suggesting net margin of about 6.9%
| MOD | S&P 500 | |
|---|---|---|
| Current Operating Margin | 11.7% | 18.8% |
| Current OCF Margin | 5.4% | 20.5% |
| Current Net Income Margin | 6.9% | 13.1% |
This table highlights how MOD profitability vs broader market. For more details see: MOD Operating Income Comparison
[4] Financial Stability Looks Strong
- MOD Debt was $582 Mil at the end of the most recent quarter, while its current Market Cap is $9.3 Bil. This implies Debt-to-Equity Ratio of 6.3%
- MOD Cash (including cash equivalents) makes up $84 Mil of $2.4 Bil in total Assets. This yields a Cash-to-Assets Ratio of 3.5%
| MOD | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 6.3% | 19.5% |
| Current Cash-to-Assets Ratio | 3.5% | 7.2% |
[5] Downturn Resilience Is Very Weak
MOD has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- MOD stock fell 57.5% from a high of $18.13 on 1 June 2021 to $7.71 on 27 April 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 November 2022
- Since then, the stock increased to a high of $176.72 on 29 January 2026 $176.72
| MOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.5% | -25.4% |
| Time to Full Recovery | 188 days | 464 days |
2020 Covid Pandemic
- MOD stock fell 67.3% from a high of $9.10 on 5 February 2020 to $2.98 on 3 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 November 2020
| MOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -67.3% | -33.9% |
| Time to Full Recovery | 217 days | 148 days |
2008 Global Financial Crisis
- MOD stock fell 97.1% from a high of $28.84 on 4 September 2007 to $0.83 on 12 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 2 June 2023
| MOD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -97.1% | -56.8% |
| Time to Full Recovery | 5,223 days | 1,480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read MOD Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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