MODINE MANUFACTURING CO (MOD) Stock Fundamental Analysis
NYSE:MOD - New York Stock Exchange, Inc. - US6078281002 - Common Stock - Currency: USD
Overall MOD gets a fundamental rating of 6 out of 10. We evaluated MOD against 81 industry peers in the Automobile Components industry. MOD gets an excellent profitability rating and is at the same time showing great financial health properties. MOD shows excellent growth, but is valued quite expensive already. With these ratings, MOD could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
MOD had positive earnings in the past year.
In the past year MOD had a positive cash flow from operations.
MOD had positive earnings in 4 of the past 5 years.
MOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.60%, MOD belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
MOD has a Return On Equity of 20.22%. This is amongst the best in the industry. MOD outperforms 96.30% of its industry peers.
The Return On Invested Capital of MOD (16.78%) is better than 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 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
MOD's Profit Margin of 7.12% is amongst the best of the industry. MOD outperforms 91.36% of its industry peers.
In the last couple of years the Profit Margin of MOD has grown nicely.
MOD's Operating Margin of 12.07% is amongst the best of the industry. MOD outperforms 93.83% of its industry peers.
In the last couple of years the Operating Margin of MOD has grown nicely.
MOD has a Gross Margin of 24.92%. This is in the lower half of the industry: MOD underperforms 64.20% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MOD is still creating some value.
The number of shares outstanding for MOD remains at a similar level compared to 1 year ago.
MOD has more shares outstanding than it did 5 years ago.
MOD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.62 indicates that MOD is not in any danger for bankruptcy at the moment.
MOD's Altman-Z score of 5.62 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.
The Debt to FCF ratio of MOD (2.71) is better than 91.36% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that MOD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, MOD is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.62 |
ROIC/WACC1.8
WACC9.34%
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.
MOD has a better Quick ratio (1.15) than 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.62% over the past year.
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.
Looking at the last year, MOD shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
The Revenue has been growing slightly by 5.51% on average over the past years.
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 20.99% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y14.22%
EPS Next 2Y20.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.24%
Revenue Next 2Y8.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 22.42 indicates a rather expensive valuation of MOD.
65.43% of the companies in the same industry are cheaper than MOD, based on the Price/Earnings ratio.
MOD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 19.63, which indicates a rather expensive current valuation of MOD.
Based on the Price/Forward Earnings ratio, MOD is valued a bit more expensive than the industry average as 69.14% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MOD to the average of the S&P500 Index (22.15), we can say MOD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 19.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MOD indicates a slightly more expensive valuation: MOD is more expensive than 75.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MOD is valued a bit more expensive than 75.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.79 | ||
| EV/EBITDA | 13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of MOD may justify a higher PE ratio.
A more expensive valuation may be justified as MOD's earnings are expected to grow with 20.99% in the coming years.
PEG (NY)1.58
PEG (5Y)0.72
EPS Next 2Y20.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MOD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.8
-0.69 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.42%
Inst Owner Change6.56%
Ins Owners1.5%
Ins Owner Change-0.21%
Market Cap4.76B
Analysts81.82
Price Target134.32 (47.93%)
Short Float %6.77%
Short Ratio2.92
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)-9.09%
PT rev (3m)-10.63%
EPS NQ rev (1m)-9.9%
EPS NQ rev (3m)-13.87%
EPS NY rev (1m)-2.54%
EPS NY rev (3m)-2.93%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 19.63 | ||
| P/S | 1.84 | ||
| P/FCF | 36.79 | ||
| P/OCF | 22.3 | ||
| P/B | 5.23 | ||
| P/tB | 8.98 | ||
| EV/EBITDA | 13 |
EPS(TTM)4.05
EY4.46%
EPS(NY)4.63
Fwd EY5.09%
FCF(TTM)2.47
FCFY2.72%
OCF(TTM)4.07
OCFY4.48%
SpS49.31
BVpS17.37
TBVpS10.11
PEG (NY)1.58
PEG (5Y)0.72
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 | 5.62 |
F-Score9
WACC9.34%
ROIC/WACC1.8
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 Y14.22%
EPS Next 2Y20.99%
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 Year6.24%
Revenue Next 2Y8.19%
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%