NYSE:MOD

Stock Analysis Report

Executive Summary

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Modine Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MOD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.8%

MOD

2.1%

US Auto Components

2.4%

US Market


1 Year Return

-74.0%

MOD

-44.3%

US Auto Components

-10.0%

US Market

Return vs Industry: MOD underperformed the US Auto Components industry which returned -47.9% over the past year.

Return vs Market: MOD underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

MODIndustryMarket
7 Day32.8%2.1%2.4%
30 Day-20.7%-25.4%-11.0%
90 Day-45.3%-42.5%-19.4%
1 Year-74.0%-74.0%-43.4%-44.3%-8.1%-10.0%
3 Year-61.6%-61.6%-41.4%-47.4%17.3%9.6%
5 Year-68.4%-68.4%-38.4%-47.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is Modine Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Modine Manufacturing undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOD ($3.31) is trading below our estimate of fair value ($17.24)

Significantly Below Fair Value: MOD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MOD is poor value based on its PE Ratio (15.7x) compared to the Auto Components industry average (11.1x).

PE vs Market: MOD is poor value based on its PE Ratio (15.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: MOD is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MOD is good value based on its PB Ratio (0.3x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Modine Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOD's forecast earnings growth (53.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MOD's earnings (53.9% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MOD's revenue (2.6% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: MOD's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MOD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Modine Manufacturing performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOD has a large one-off loss of $14.8M impacting its December 31 2019 financial results.

Growing Profit Margin: MOD's current net profit margins (0.5%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: MOD's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: MOD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MOD had negative earnings growth (-88.8%) over the past year, making it difficult to compare to the Auto Components industry average (-4.2%).


Return on Equity

High ROE: MOD's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is Modine Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: MOD's short term assets ($611.3M) exceed its short term liabilities ($474.2M).

Long Term Liabilities: MOD's short term assets ($611.3M) exceed its long term liabilities ($518.0M).


Debt to Equity History and Analysis

Debt Level: MOD's debt to equity ratio (81.7%) is considered high.

Reducing Debt: MOD's debt to equity ratio has increased from 36.4% to 81.7% over the past 5 years.

Debt Coverage: MOD's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: MOD's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Modine Manufacturing's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MOD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MOD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MOD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MOD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MOD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MOD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Tom Burke (62yo)

12s

Tenure

US$4,623,907

Compensation

Mr. Thomas A. Burke, also known as Tom, has been the Chief Executive Officer and President of Modine Manufacturing Company since April 1, 2008. Mr. Burke served as the Chief Operating Officer of Modine Man ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.62M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Burke
President12yrsUS$4.62m0.98% $2.0m
Michael Lucareli
CFO & VP of Finance8.5yrsUS$1.57m0.27% $561.0k
Scott Bowser
VP of Commercial & Industrial Solutions and COO1.25yrsUS$1.04m0.27% $545.7k
Thomas Marry
1.25yrsUS$1.70m0.44% $897.7k
Kathleen Powers
VP of Investor Relations & Tax and Treasurer3.33yrsno datano data
Sylvia Stein
VP, General Counsel & Corporate Secretary2.25yrsno data0.0026% $5.3k
Brian Agen
Vice President of Human Resources7.5yrsno data0.071% $147.1k
Mark Hudson
VP & Corporate Controller7.58yrsno datano data

5.4yrs

Average Tenure

51yo

Average Age

Experienced Management: MOD's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Burke
President12yrsUS$4.62m0.98% $2.0m
Charles Cooley
Independent Director13.5yrsUS$223.75k0.11% $231.4k
David Anderson
Independent Director9.92yrsUS$208.75k0.13% $265.2k
Marsha Williams
Lead Director6.75yrsUS$318.75k0.22% $457.0k
David Bills
Independent Director5.17yrsUS$208.75k0.037% $75.9k
Larry Moore
Independent Director9.92yrsUS$208.75k0.097% $200.0k
Christopher Patterson
Independent Director9.92yrsUS$218.75k0.096% $197.1k
Suresh Garimella
Independent Director8.75yrsUS$216.25k0.096% $197.5k
Eric Ashleman
Independent Director1.17yrsUS$21.25k0.017% $34.9k
Christine Yan
Independent Director5.92yrsUS$208.75k0.048% $99.1k

9.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MOD's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Modine Manufacturing Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Modine Manufacturing Company
  • Ticker: MOD
  • Exchange: NYSE
  • Founded: 1916
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$205.771m
  • Shares outstanding: 50.81m
  • Website: https://www.modine.com

Number of Employees


Location

  • Modine Manufacturing Company
  • 1500 DeKoven Avenue
  • Racine
  • Wisconsin
  • 53403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MODNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
MMFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications. It operates through Vehicular Thermal Solutions, Commercial and Industrial Solutions, and Building HVAC Systems segments. The company offers powertrain cooling products, including engine cooling assemblies, radiators, condensers, and charge air coolers; auxiliary cooling products, such as power steering and transmission oil coolers; component assemblies; radiators for special applications; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, charge air, and intake air coolers; and chillers and cooling plates for battery thermal management. It also provides heat-exchanger and microchannel Coils; unit, fluid, transformer oil, and brine coolers, as well as remote condensers; and coatings to protect against corrosion. In addition, the company offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; hydronic products, such as commercial fin-tube radiation, cabinet unit heaters, and convectors; roof-mounted direct- and indirect-fired makeup air units; commercial packaged rooftop ventilation units; unit ventilators; single packaged vertical units; precision air conditioning units for data center applications; air-handling units; chillers; ceiling cassettes; hybrid fan coils; and condensing units. It serves automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; commercial and industrial equipment OEMs; heating, ventilation, and cooling OEMs; construction architects and contractors; and wholesalers of heating equipment. The company has operations in North America, South America, Europe, the Asia/Pacific, the Middle East, and Africa. Modine Manufacturing Company was founded in 1916 and is headquartered in Racine, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 23:42
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.