MODINE MANUFACTURING CO (MOD) Stock Fundamental Analysis
NYSE:MOD - New York Stock Exchange, Inc. - US6078281002 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MOD. MOD was compared to 81 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making MOD a very profitable company, without any liquidiy or solvency issues. MOD is quite expensive at the moment. It does show a decent growth rate. These ratings would make MOD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MOD was profitable.
In the past year MOD had a positive cash flow from operations.
Of the past 5 years MOD 4 years were profitable.
Each year in the past 5 years MOD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MOD (9.60%) is better than 95.06% of its industry peers.
MOD's Return On Equity of 20.22% is amongst the best of the industry. MOD outperforms 97.53% of its industry peers.
MOD's Return On Invested Capital of 16.78% is amongst the best of the industry. MOD outperforms 95.06% of its industry peers.
MOD had an Average Return On Invested Capital over the past 3 years of 13.99%. This is above the industry average of 9.05%.
The last Return On Invested Capital (16.78%) for MOD is above the 3 year average (13.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 20.22% | ||
| ROIC | 16.78% |
ROA(3y)9.37%
ROA(5y)3.51%
ROE(3y)22.55%
ROE(5y)5.22%
ROIC(3y)13.99%
ROIC(5y)11.42%
1.3 Margins
With an excellent Profit Margin value of 7.12%, MOD belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
MOD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.07%, MOD belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
In the last couple of years the Operating Margin of MOD has grown nicely.
MOD has a worse Gross Margin (24.92%) than 62.96% of its industry peers.
In the last couple of years the Gross Margin of MOD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 7.12% | ||
| GM | 24.92% |
OM growth 3Y37.91%
OM growth 5Y32.44%
PM growth 3Y19.67%
PM growth 5YN/A
GM growth 3Y18.21%
GM growth 5Y9.87%
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.
Compared to 1 year ago, MOD has about the same amount of shares outstanding.
Compared to 5 years ago, MOD has more shares outstanding
MOD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.92 indicates that MOD is not in any danger for bankruptcy at the moment.
MOD's Altman-Z score of 5.92 is amongst the best of the industry. MOD outperforms 87.65% of its industry peers.
The Debt to FCF ratio of MOD is 2.71, which is a good value as it means it would take MOD, 2.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.71, MOD belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
MOD has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
MOD has a worse Debt to Equity ratio (0.34) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.67
WACC10.05%
2.3 Liquidity
MOD has a Current Ratio of 1.78. This is a normal value and indicates that MOD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.78, MOD is doing good in the industry, outperforming 69.14% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that MOD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.15, MOD is doing good in the industry, outperforming 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, which is quite impressive.
Measured over the past years, MOD shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.99% on average per year.
The Revenue has been growing slightly by 7.30% in the past year.
MOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.51% yearly.
EPS 1Y (TTM)24.62%
EPS 3Y50%
EPS 5Y30.99%
EPS Q2Q%45.45%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y8.01%
Revenue growth 5Y5.51%
Sales Q2Q%7.24%
3.2 Future
The Earnings Per Share is expected to grow by 17.34% on average over the next years. This is quite good.
Based on estimates for the next years, MOD will show a small growth in Revenue. The Revenue will grow by 7.73% on average per year.
EPS Next Y12.28%
EPS Next 2Y17.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.12%
Revenue Next 2Y7.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MOD is valuated rather expensively with a Price/Earnings ratio of 24.32.
66.67% of the companies in the same industry are cheaper than MOD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MOD to the average of the S&P500 Index (27.15), we can say MOD is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.66, the valuation of MOD can be described as rather expensive.
70.37% of the companies in the same industry are cheaper than MOD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MOD to the average of the S&P500 Index (21.60), we can say MOD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 21.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOD is valued a bit more expensive than 77.78% of the companies in the same industry.
75.31% of the companies in the same industry are cheaper than MOD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.91 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MOD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MOD's earnings are expected to grow with 17.34% in the coming years.
PEG (NY)1.98
PEG (5Y)0.78
EPS Next 2Y17.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MOD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
98.5
-2.84 (-2.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners110.45%
Inst Owner Change6.54%
Ins Owners1.51%
Ins Owner Change-1.6%
Market Cap5.16B
Analysts82
Price Target129.56 (31.53%)
Short Float %6.63%
Short Ratio3.34
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)15.59%
Min EPS beat(2)15.06%
Max EPS beat(2)16.12%
EPS beat(4)4
Avg EPS beat(4)13.6%
Min EPS beat(4)4.2%
Max EPS beat(4)19.04%
EPS beat(8)7
Avg EPS beat(8)25.92%
EPS beat(12)11
Avg EPS beat(12)38.51%
EPS beat(16)13
Avg EPS beat(16)26.2%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)1.52%
Revenue beat(4)3
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)3.37%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)7
Avg Revenue beat(12)1.73%
Revenue beat(16)9
Avg Revenue beat(16)1.25%
PT rev (1m)-3.54%
PT rev (3m)-13.8%
EPS NQ rev (1m)-4.9%
EPS NQ rev (3m)-15.98%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-4.88%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 21.66 | ||
| P/S | 2 | ||
| P/FCF | 39.91 | ||
| P/OCF | 24.19 | ||
| P/B | 5.67 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)4.05
EY4.11%
EPS(NY)4.55
Fwd EY4.62%
FCF(TTM)2.47
FCFY2.51%
OCF(TTM)4.07
OCFY4.13%
SpS49.31
BVpS17.37
TBVpS10.11
PEG (NY)1.98
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 20.22% | ||
| ROCE | 22.64% | ||
| ROIC | 16.78% | ||
| ROICexc | 17.69% | ||
| ROICexgc | 24.9% | ||
| OM | 12.07% | ||
| PM (TTM) | 7.12% | ||
| GM | 24.92% | ||
| FCFM | 5% |
ROA(3y)9.37%
ROA(5y)3.51%
ROE(3y)22.55%
ROE(5y)5.22%
ROIC(3y)13.99%
ROIC(5y)11.42%
ROICexc(3y)14.76%
ROICexc(5y)12.04%
ROICexgc(3y)20.94%
ROICexgc(5y)17.25%
ROCE(3y)18.88%
ROCE(5y)15.41%
ROICexcg growth 3Y31.11%
ROICexcg growth 5Y36.67%
ROICexc growth 3Y31.05%
ROICexc growth 5Y35.05%
OM growth 3Y37.91%
OM growth 5Y32.44%
PM growth 3Y19.67%
PM growth 5YN/A
GM growth 3Y18.21%
GM growth 5Y9.87%
F-Score9
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 108.11% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 11.99 | ||
| Cash Conversion | 54.78% | ||
| Profit Quality | 70.27% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 5.92 |
F-Score9
WACC10.05%
ROIC/WACC1.67
Cap/Depr(3y)119.63%
Cap/Depr(5y)98.79%
Cap/Sales(3y)3.04%
Cap/Sales(5y)2.66%
Profit Quality(3y)61.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.62%
EPS 3Y50%
EPS 5Y30.99%
EPS Q2Q%45.45%
EPS Next Y12.28%
EPS Next 2Y17.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y8.01%
Revenue growth 5Y5.51%
Sales Q2Q%7.24%
Revenue Next Year6.12%
Revenue Next 2Y7.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.69%
EBIT growth 3Y48.96%
EBIT growth 5Y39.74%
EBIT Next Year47.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.61%
OCF growth 3Y164.71%
OCF growth 5Y29.8%