MODINE MANUFACTURING CO (MOD) Stock Fundamental Analysis
NYSE:MOD - New York Stock Exchange, Inc. - US6078281002 - Common Stock - Currency: USD
MOD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. While MOD has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MOD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MOD had positive earnings in the past year.
MOD had a positive operating cash flow in the past year.
In multiple years MOD reported negative net income over the last 5 years.
In the past 5 years MOD always reported a positive cash flow from operatings.
1.2 Ratios
MOD has a better Return On Assets (8.76%) than 93.83% of its industry peers.
With an excellent Return On Equity value of 18.73%, MOD belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
MOD's Return On Invested Capital of 16.21% is amongst the best of the industry. MOD outperforms 95.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOD is above the industry average of 8.98%.
The 3 year average ROIC (11.11%) for MOD is below the current ROIC(16.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 18.73% | ||
| ROIC | 16.21% |
ROA(3y)8.16%
ROA(5y)1.56%
ROE(3y)22.11%
ROE(5y)1.09%
ROIC(3y)11.11%
ROIC(5y)8.99%
1.3 Margins
MOD's Profit Margin of 6.31% is in line compared to the rest of the industry. MOD outperforms 43.21% of its industry peers.
In the last couple of years the Profit Margin of MOD has grown nicely.
The Operating Margin of MOD (11.31%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MOD has grown nicely.
MOD's Gross Margin of 24.14% is on the low side compared to the rest of the industry. MOD is outperformed by 64.20% of its industry peers.
MOD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 6.31% | ||
| GM | 24.14% |
OM growth 3Y31.52%
OM growth 5Y13.62%
PM growth 3YN/A
PM growth 5Y11.95%
GM growth 3Y10.4%
GM growth 5Y5.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOD is creating some value.
MOD has more shares outstanding than it did 1 year ago.
MOD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MOD has a worse debt to assets ratio.
2.2 Solvency
MOD has an Altman-Z score of 5.40. This indicates that MOD is financially healthy and has little risk of bankruptcy at the moment.
MOD has a better Altman-Z score (5.40) than 91.36% of its industry peers.
The Debt to FCF ratio of MOD is 3.80, which is a good value as it means it would take MOD, 3.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.80, MOD is in line with its industry, outperforming 43.21% of the companies in the same industry.
MOD has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, MOD is doing worse than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.79
WACC9.04%
2.3 Liquidity
MOD has a Current Ratio of 1.87. This is a normal value and indicates that MOD is financially healthy and should not expect problems in meeting its short term obligations.
MOD's Current ratio of 1.87 is fine compared to the rest of the industry. MOD outperforms 72.84% of its industry peers.
A Quick Ratio of 1.18 indicates that MOD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.18, MOD is doing good in the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.46% over the past year.
Measured over the past years, MOD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.52% on average per year.
MOD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.85%.
MOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.70% yearly.
EPS 1Y (TTM)17.46%
EPS 3Y37.14%
EPS 5Y15.52%
EPS Q2Q%24.32%
Revenue 1Y (TTM)4.85%
Revenue growth 3Y10.01%
Revenue growth 5Y1.7%
Sales Q2Q%9.87%
3.2 Future
MOD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.19% yearly.
MOD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.08% yearly.
EPS Next Y20.79%
EPS Next 2Y20.85%
EPS Next 3Y22.19%
EPS Next 5YN/A
Revenue Next Year6.82%
Revenue Next 2Y7.2%
Revenue Next 3Y8.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MOD is valuated rather expensively with a Price/Earnings ratio of 21.78.
Compared to the rest of the industry, the Price/Earnings ratio of MOD indicates a slightly more expensive valuation: MOD is more expensive than 66.67% of the companies listed in the same industry.
MOD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
MOD is valuated correctly with a Price/Forward Earnings ratio of 16.98.
Based on the Price/Forward Earnings ratio, MOD is valued a bit more expensive than 64.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MOD to the average of the S&P500 Index (21.38), we can say MOD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than MOD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MOD is valued a bit more expensive than 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.35 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MOD has a very decent profitability rating, which may justify a higher PE ratio.
MOD's earnings are expected to grow with 22.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.4
EPS Next 2Y20.85%
EPS Next 3Y22.19%
5. Dividend
5.1 Amount
MOD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.57
-0.56 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.42%
Inst Owner Change1.13%
Ins Owners1.5%
Ins Owner Change-2.24%
Market Cap4.24B
Analysts81.82
Price Target134.32 (66.71%)
Short Float %9.36%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.63%
Min EPS beat(2)4.2%
Max EPS beat(2)15.06%
EPS beat(4)3
Avg EPS beat(4)9.5%
Min EPS beat(4)-0.29%
Max EPS beat(4)19.04%
EPS beat(8)7
Avg EPS beat(8)29.72%
EPS beat(12)11
Avg EPS beat(12)38.3%
EPS beat(16)13
Avg EPS beat(16)30.78%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.71%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)3.37%
Revenue beat(8)4
Avg Revenue beat(8)0.88%
Revenue beat(12)7
Avg Revenue beat(12)2.08%
Revenue beat(16)9
Avg Revenue beat(16)1.36%
PT rev (1m)-10.63%
PT rev (3m)-10.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.48%
EPS NY rev (1m)0%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-7.28%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 16.98 | ||
| P/S | 1.67 | ||
| P/FCF | 43.35 | ||
| P/OCF | 21.38 | ||
| P/B | 4.95 | ||
| P/tB | 9.01 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)3.7
EY4.59%
EPS(NY)4.75
Fwd EY5.89%
FCF(TTM)1.86
FCFY2.31%
OCF(TTM)3.77
OCFY4.68%
SpS48.31
BVpS16.27
TBVpS8.94
PEG (NY)1.05
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 18.73% | ||
| ROCE | 21.33% | ||
| ROIC | 16.21% | ||
| ROICexc | 17.29% | ||
| ROICexgc | 24.85% | ||
| OM | 11.31% | ||
| PM (TTM) | 6.31% | ||
| GM | 24.14% | ||
| FCFM | 3.85% |
ROA(3y)8.16%
ROA(5y)1.56%
ROE(3y)22.11%
ROE(5y)1.09%
ROIC(3y)11.11%
ROIC(5y)8.99%
ROICexc(3y)11.72%
ROICexc(5y)9.48%
ROICexgc(3y)16.66%
ROICexgc(5y)13.6%
ROCE(3y)14.7%
ROCE(5y)11.89%
ROICexcg growth 3Y21.77%
ROICexcg growth 5Y13.32%
ROICexc growth 3Y22.92%
ROICexc growth 5Y11.36%
OM growth 3Y31.52%
OM growth 5Y13.62%
PM growth 3YN/A
PM growth 5Y11.95%
GM growth 3Y10.4%
GM growth 5Y5.73%
F-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 136.6% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.92% | ||
| Profit Quality | 60.99% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.4 |
F-Score6
WACC9.04%
ROIC/WACC1.79
Cap/Depr(3y)112.73%
Cap/Depr(5y)95.67%
Cap/Sales(3y)2.74%
Cap/Sales(5y)2.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.46%
EPS 3Y37.14%
EPS 5Y15.52%
EPS Q2Q%24.32%
EPS Next Y20.79%
EPS Next 2Y20.85%
EPS Next 3Y22.19%
EPS Next 5YN/A
Revenue 1Y (TTM)4.85%
Revenue growth 3Y10.01%
Revenue growth 5Y1.7%
Sales Q2Q%9.87%
Revenue Next Year6.82%
Revenue Next 2Y7.2%
Revenue Next 3Y8.08%
Revenue Next 5YN/A
EBIT growth 1Y18.04%
EBIT growth 3Y44.69%
EBIT growth 5Y15.56%
EBIT Next Year53.63%
EBIT Next 3Y29.48%
EBIT Next 5YN/A
FCF growth 1Y259.19%
FCF growth 3Y2.5%
FCF growth 5Y33.81%
OCF growth 1Y175.14%
OCF growth 3Y12.73%
OCF growth 5Y15.75%