Modine Manufacturing Company Common Stock (MOD)

FairStock Score: 32/100 — RISKY

Key Financials

Strengths

• Solid return on equity of 10.0% above cost of capital
• Altman Z-Score of 7.2 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 30.5% demonstrates strong top-line momentum
• Established organization with 11,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($30) with negative 763% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration

AI Analysis

Modine Manufacturing Company Common Stock is a mid-cap consumer cyclical company valued at $13.4 billion. Revenue stands at $2.9 billion, though the company is currently unprofitable. From a quality standpoint, Modine shows Altman Z-Score of 7.2 confirms fortress-level solvency and adequate 10% ROE. On valuation, the stock is commanding a steep 137.7x multiple, with trades far above its Graham Number ($30) with no margin of safety. Growth dynamics show revenue growing at 30.5% and profit growth of -215.6%. Our composite FairStock Score of 32/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Modine's 31% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 138x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer