MODINE MANUFACTURING CO (MOD)

US6078281002 - Common Stock

90.99  +1.94 (+2.18%)

Premarket: 90.53 -0.46 (-0.51%)

Fundamental Rating

6

Overall MOD gets a fundamental rating of 6 out of 10. We evaluated MOD against 42 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 has a correct valuation and a medium growth rate. This makes MOD very considerable for quality investing!



8

1. Profitability

1.1 Basic Checks

In the past year MOD was profitable.
MOD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MOD reported negative net income in multiple 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 (13.66%) than 90.48% of its industry peers.
The Return On Equity of MOD (31.01%) is better than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 17.59%, MOD belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
MOD had an Average Return On Invested Capital over the past 3 years of 9.91%. This is in line with the industry average of 9.29%.
The 3 year average ROIC (9.91%) for MOD is below the current ROIC(17.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.66%
ROE 31.01%
ROIC 17.59%
ROA(3y)-0.25%
ROA(5y)0.92%
ROE(3y)-5.23%
ROE(5y)-0.07%
ROIC(3y)9.91%
ROIC(5y)8.7%

1.3 Margins

Looking at the Profit Margin, with a value of 9.31%, MOD belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
In the last couple of years the Profit Margin of MOD has grown nicely.
MOD has a better Operating Margin (10.04%) than 80.95% of its industry peers.
In the last couple of years the Operating Margin of MOD has grown nicely.
MOD has a Gross Margin of 20.74%. This is in the better half of the industry: MOD outperforms 64.29% of its industry peers.
MOD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.04%
PM (TTM) 9.31%
GM 20.74%
OM growth 3Y31.72%
OM growth 5Y4.23%
PM growth 3YN/A
PM growth 5Y44.82%
GM growth 3Y2.87%
GM growth 5Y-0.01%

7

2. Health

2.1 Basic Checks

MOD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for MOD has been reduced compared to a year ago.

2.2 Solvency

MOD has an Altman-Z score of 5.90. This indicates that MOD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.90, MOD belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
MOD has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as MOD would need 2.15 years to pay back of all of its debts.
MOD has a Debt to FCF ratio of 2.15. This is amongst the best in the industry. MOD outperforms 88.10% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MOD is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, MOD perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 2.15
Altman-Z 5.9
ROIC/WACC1.55
WACC11.38%

2.3 Liquidity

MOD has a Current Ratio of 1.93. This is a normal value and indicates that MOD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.93, MOD is in line with its industry, outperforming 52.38% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that MOD should not have too much problems paying its short term obligations.
MOD has a Quick ratio (1.21) which is comparable to the rest of the industry.
MOD does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.21

6

3. Growth

3.1 Past

MOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.27%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.83% on average over the past years.
The Revenue has been growing slightly by 7.46% in the past year.
MOD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.79% yearly.
EPS 1Y (TTM)70.27%
EPS 3Y22.92%
EPS 5Y4.83%
EPS growth Q2Q54.17%
Revenue 1Y (TTM)7.46%
Revenue growth 3Y5.17%
Revenue growth 5Y1.79%
Revenue growth Q2Q0.25%

3.2 Future

The Earnings Per Share is expected to grow by 33.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y67.89%
EPS Next 2Y40.49%
EPS Next 3Y33.61%
EPS Next 5YN/A
Revenue Next Year6.33%
Revenue Next 2Y6.82%
Revenue Next 3Y6.54%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.89, which means the current valuation is very expensive for MOD.
MOD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MOD to the average of the S&P500 Index (25.25), we can say MOD is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.64, MOD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOD is on the same level as its industry peers.
MOD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
Industry RankSector Rank
PE 28.89
Fwd PE 23.64

4.2 Price Multiples

66.67% of the companies in the same industry are cheaper than MOD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOD is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 30.71
EV/EBITDA 16.55

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MOD has an outstanding profitability rating, which may justify a higher PE ratio.
MOD's earnings are expected to grow with 33.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)5.98
EPS Next 2Y40.49%
EPS Next 3Y33.61%

0

5. Dividend

5.1 Amount

MOD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

MODINE MANUFACTURING CO

NYSE:MOD (4/24/2024, 7:17:21 PM)

Premarket: 90.53 -0.46 (-0.51%)

90.99

+1.94 (+2.18%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.75B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 28.89
Fwd PE 23.64
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.43
PEG (5Y)5.98
Profitability
Industry RankSector Rank
ROA 13.66%
ROE 31.01%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.04%
PM (TTM) 9.31%
GM 20.74%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.93
Quick Ratio 1.21
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)70.27%
EPS 3Y22.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y67.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.46%
Revenue growth 3Y5.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y