Modine (MOD): Reassessing Valuation After Franklin Expansion and Upgraded Growth Expectations

Modine Manufacturing (MOD) has drawn fresh attention after announcing a new facility in Franklin, a move that coincided with a clear jump in the share price and renewed investor interest.

See our latest analysis for Modine Manufacturing.

The Franklin expansion fits into a broader upswing, with the stock now at $159.91 and supported by strong fundamentals, including a roughly 9% 1 month share price return and an exceptional 3 year total shareholder return above 600%, suggesting momentum is still building rather than fading.

If this kind of sustained run has you wondering what else could surprise to the upside, it might be worth exploring fast growing stocks with high insider ownership as your next hunting ground.

With earnings still being revised higher, a double digit discount to analyst targets, and management cashing in some gains, the key question now is whether Modine is still mispriced or if the market is already factoring in future growth.

Most Popular Narrative Narrative: 13% Undervalued

With Modine Manufacturing trading at $159.91 against a most popular narrative fair value of $183, the valuation case leans on aggressive growth and margin expansion.

The accelerating build-out of data centers and the need for next-generation cooling solutions are driving extraordinary demand for Modine's products, with management forecasting the potential to double data center revenues from ~$1 billion in fiscal '26 to $2 billion by fiscal '28; this structural demand from digital infrastructure is set to materially boost revenue growth and deliver significant operating leverage over time.

Read the complete narrative.

Curious how that kind of demand jump feeds into higher margins, faster earnings growth, and a richer future multiple than the industry norm? The full narrative unpacks the revenue ramp, profitability lift, and valuation math step by step, showing exactly how those long term forecasts build into today’s fair value.

Result: Fair Value of $183 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution missteps on acquisitions or a slowdown in North American data center demand could undermine those growth assumptions and compress Modine’s margin potential.

Find out about the key risks to this Modine Manufacturing narrative.

Build Your Own Modine Manufacturing Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a fresh thesis in just minutes: Do it your way.

A great starting point for your Modine Manufacturing research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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