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MOD, Modine Manufacturing Company

Auto Components capital-intensive Cyclical

We sell customer-centric thermal management solutions in a wide array of commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration markets.

For more than 100 years, we have been a trusted leader in designing, engineering, testing, and manufacturing mission-critical thermal solutions.

Our technologies heat, cool and ventilate, with systems that drive performance, efficiency, and reliability for our customers.

Latest annual: FY2026 10-K

MOD · Modine Manufacturing Company

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2026

$3.2B

+23.1% YoY · 12% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $3.2B 5-yr avg $2.5B

Gross margin 23% 5-yr avg 20%

Operating margin 10.8% 5-yr avg 8.8%

Owner-earnings margin 5% 5-yr avg 4%

Free cash flow margin 3% 5-yr avg 3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Climate Solutions (65%) and Performance Technologies (35%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 17% and operating margin about 5.0% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. The margin is cyclical, swinging between −5.4% and 11% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Read this kind of business on volume, mix and the cost of the platform. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 12%). Owner earnings, the cash-based check, have been thin too. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Climate Solutions is 65% of revenue, with Performance Technologies the other meaningful segment at 35%.

Revenue by reportable segment, FY2026

Climate Solutions65%$2.1B
Performance Technologies35%$1.1B

By geographyAmericas67%Europe26%Asia7%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2026

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	2026’26	TTMTTMMar 2026
											Income statement
$1.5B	$2.1B	$2.2B	$2.0B	$1.8B	$2.1B	$2.3B	$2.4B	$2.6B	$3.2B	$3.2B	RevenueRevenue
17%	17%	17%	16%	16%	15%	17%	22%	25%	23%	23%	Gross marginGross mgn
14%	12%	11%	13%	12%	10%	10%	11%	13%	11%	11%	SG&A / revenueSG&A/rev
4%	3%	3%	3%	3%	2%	2%	2%	1%	1%	1%	R&D / revenueR&D/rev
$42M	$92M	$110M	$38M	($98M)	$119M	$150M	$241M	$284M	$342M	$342M	Operating incomeOp. inc.
2.8%	4.4%	5.0%	1.9%	−5.4%	5.8%	6.5%	10.0%	11.0%	10.8%	10.8%	Operating marginOp. mgn
$14M	$22M	$85M	($2M)	($211M)	$85M	$153M	$162M	$184M	$122M	$122M	Net incomeNet inc.
29%	—	-6%	—	—	15%	—	24%	27%	34%	34%	Effective tax rateTax rate
											Cash flow & returns
$42M	$124M	$103M	$58M	$150M	$12M	$108M	$215M	$213M	$249M	$249M	Operating cash flowOp. cash
$58M	$77M	$77M	$77M	$69M	$55M	$55M	$56M	$78M	$80M	$80M	DepreciationDeprec.
($38M)	$16M	($66M)	($24M)	$286M	($134M)	($107M)	($14M)	($75M)	$25M	$25M	Working capital & otherWC & other
$64M	$71M	$74M	$71M	$33M	$40M	$51M	$88M	$84M	$143M	$143M	CapexCapex
4.3%	3.4%	3.3%	3.6%	1.8%	2.0%	2.2%	3.6%	3.3%	4.5%	4.5%	Capex / revenueCapex/rev
($23M)	$53M	$29M	($13M)	$117M	($29M)	$57M	$159M	$129M	$169M	$169M	Owner earningsOwner earn.
−1.5%	2.5%	1.3%	−0.7%	6.5%	−1.4%	2.5%	6.6%	5.0%	5.3%	5.3%	Owner earnings marginOE mgn
($23M)	$53M	$29M	($13M)	$117M	($29M)	$57M	$127M	$129M	$105M	$105M	Free cash flowFCF
−1.5%	2.5%	1.3%	−0.7%	6.5%	−1.4%	2.5%	5.3%	5.0%	3.3%	3.3%	Free cash flow marginFCF mgn
$364M	$0	$0	—	—	$0	$0	$186M	$3M	$182M	$182M	AcquisitionsAcquis.
$0	$0	$600K	$2M	$0	$0	$9M	$18M	$31M	$7M	—	BuybacksBuybacks
4%	5%	12%	2%	-12%	13%	17%	16%	17%	—	—	ROICROIC
3%	5%	16%	-0%	-60%	19%	26%	22%	20%	10%	10%	Return on equityROE
3%	5%	16%	−0%	−60%	19%	26%	22%	20%	10%	10%	Retained to equityRetained/eq
											Balance sheet
$39M	$45M	$46M	$74M	$42M	$49M	$71M	$60M	$72M	$74M	$74M	Cash & investmentsCash+inv
$295M	$342M	$339M	$293M	$268M	$368M	$398M	$423M	$479M	$731M	$731M	ReceivablesReceiv.
$169M	$191M	$201M	$207M	$196M	$281M	$325M	$358M	$341M	$506M	$506M	InventoryInvent.
$230M	$278M	$281M	$227M	$234M	$326M	$333M	$283M	$291M	$465M	$465M	Accounts payablePayables
$233M	$256M	$258M	$273M	$230M	$323M	$390M	$497M	$529M	$772M	$772M	Operating working capitalOper. WC
$553M	$643M	$647M	$633M	$645M	$758M	$846M	$894M	$961M	$1.4B	$1.4B	Current assetsCur. assets
$455M	$516M	$470M	$372M	$469M	$495M	$507M	$546M	$541M	$729M	$729M	Current liabilitiesCur. liab.
1.2×	1.2×	1.4×	1.7×	1.4×	1.5×	1.7×	1.6×	1.8×	1.9×	1.9×	Current ratioCurr. ratio
$165M	$174M	$169M	$166M	$171M	$168M	$166M	$231M	$234M	$292M	$292M	GoodwillGoodwill
$1.4B	$1.6B	$1.5B	$1.5B	$1.3B	$1.4B	$1.6B	$1.9B	$1.9B	$2.7B	$2.7B	Total assetsAssets
$444M	$432M	$435M	$473M	$337M	$374M	$352M	$422M	$343M	$431M	$431M	Total debtDebt
$405M	$387M	$389M	$399M	$296M	$325M	$281M	$362M	$272M	$357M	$357M	Net debt / (cash)Net debt
2.5×	3.6×	4.4×	1.7×	-5.0×	7.6×	7.3×	10.0×	10.7×	10.8×	10.8×	Interest coverageInt. cov.
$414M	$490M	$534M	$488M	$349M	$451M	$593M	$748M	$910M	$1.2B	$1.2B	Shareholders’ equityEquity
0.5%	0.5%	0.4%	0.3%	0.3%	0.3%	0.3%	0.4%	1.0%	0.7%	0.7%	Stock comp / revenueSBC/rev
											Per share
48.3M	50.9M	51.3M	50.8M	51.3M	52.5M	52.8M	53.4M	53.9M	53.8M	53.8M	Shares out (diluted)Shares
$31.12	$41.32	$43.13	$38.89	$35.25	$39.05	$43.52	$45.09	$47.93	$59.13	$59.13	Revenue / shareRev/sh
$0.29	$0.44	$1.65	$-0.04	$-4.11	$1.62	$2.90	$3.02	$3.41	$2.26	$2.26	EPS (diluted)EPS
$-0.47	$1.05	$0.57	$-0.26	$2.28	$-0.55	$1.08	$2.97	$2.40	$3.14	$3.14	Owner earnings / shareOE/sh
$-0.47	$1.05	$0.57	$-0.26	$2.28	$-0.55	$1.08	$2.38	$2.40	$1.96	$1.96	Free cash flow / shareFCF/sh
$1.33	$1.39	$1.44	$1.40	$0.64	$0.77	$0.96	$1.64	$1.56	$2.66	$2.66	Cap. spending / shareCapex/sh
$8.57	$9.63	$10.41	$9.60	$6.80	$8.58	$11.23	$14.00	$16.89	$22.20	$22.20	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+7.4%/yr	+10.9%/yr
Owner earnings / share	—	+6.6%/yr
EPS	+25.4%/yr	—
Capital spending / share	+8.0%/yr	+33.1%/yr
Book value / share	+11.2%/yr	+26.7%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Operating income+20.8%
“Operating income of $342 million during fiscal 2026 increased $59 million from the prior year, primarily due to higher gross profit and lower restructuring expenses, partially offset by higher SG&A expenses.”
✓ figure matches the filed record
Climate Solutions+42.7%
“During fiscal 2026, Climate Solutions segment sales increased $621 million, or 43 percent, compared with the prior year, primarily driven by higher sales of data center and HVAC technologies products, which increased $468 million and $102 million, respectively.”
✓ figure matches the filed record
Performance Technologies-1.5%
“During fiscal 2026, Performance Technologies segment sales decreased $31 million, or 3 percent, compared with the prior year, primarily due to lower sales volume in North America, largely due to general market weakness and the strategic exit of lower-margin business.”
✓ figure matches the filed record

The record, charted

FY2017–2026

Each measure over its full record; the current point and the worst year marked.

Share count

54Mpeak FY2025

ROIC

17%low FY2021

Gross margin

23%low FY2022

Net debt ÷ owner earnings

2.1×peak FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$169Mowner earningsvs.$122Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2026

Owner-earnings bridge

FY2022–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business earned $169M of owner earnings, the operating cash left after the $80M it takes just to hold its position. It put $64M more into growth; free cash flow, after that spending, was $105M.

Reported net income$122M

Owner earnings$169M · 5% of revenue

	FY2026	FY2025	FY2024	FY2023	FY2022
Reported net income	$122M	$184M	$162M	$153M	$85M
Depreciation & amortizationnon-cash charge added back	+$80M	+$78M	+$56M	+$55M	+$55M
Stock-based compensationreal costnon-cash, but a real cost	+$22M	+$26M	+$11M	+$7M	+$6M
Working capital & othertiming of cash in and out, other non-cash items	+$25M	−$75M	−$14M	−$107M	−$134M
Cash from operations	$249M	$213M	$215M	$108M	$12M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$80M	−$84M	−$56M	−$51M	−$40M
Owner earnings	$169M	$129M	$159M	$57M	($29M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$64M	—	−$32M	—	—
Free cash flow	$105M	$129M	$127M	$57M	($29M)
Owner-earnings marginowner earnings ÷ revenue	5%	5%	7%	2%	-1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $80M, roughly its depreciation, the rate its assets wear out). The other $64M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $22M), owner earnings is nearer $147M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 10.8×

Comfortable

Operating income $342M ÷ interest expense $32M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $357M · 1.0× operating profit

Modest net debt

Cash $74M − debt $431M

What this means
Netting $74M of cash and short-term investments against $431M of debt leaves $357M owed, about 1.0× a year's operating profit (1.3× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 90d

Long (60+ days)

DSO 84 + DIO 75 − DPO 69 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 12%

Solid through the cycle

9-yr median, range -12%–17%; the latest year is left out — large non-operating charges put its operating line well above pretax profit

Industry peers: median 21%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 9 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 5%

Solid, recently turned positive

latest $169M = operating cash $249M − maintenance capex $80M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 2%)

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 5% of revenue this year, a 2% median across 10 years. It chose to put $64M more into growth, so free cash flow this year was $105M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $22M of SBC) leaves $147M.
Are earnings backed by cash? 2.05×

Cash-backed

Cash from ops $249M ÷ net income $122M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 4%

Reinvests most of it

Dividends + buybacks $7M ÷ Owner Earnings $169M

What this means
Of $169M Owner Earnings, $7M (4%) went back to shareholders, $0 dividends, $7M buybacks. But the buybacks barely exceed stock issued to employees ($22M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.80×

Expanding

Capex $143M ÷ depreciation $80M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $3.2B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.94×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $431M vs $687M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 2 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +285%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.95/share (latest year $2.30), the averaged base the calculator's gate runs on, and book value is $22.62/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 10

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 4% → 11% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 4% early to 11% lately, median 5% — pricing power intact or improving.
Reinvestment, incremental ROIC 35%

What this means
Every extra dollar the business reinvested came back at a high incremental return — the lens GBM read for a moat that reinvests rather than merely harvests. The record and the 10-K are where you check whether the rate holds.
Owner earnings growth +29%/yr

What this means
Owner earnings grew about 29% a year over the record.
Worst year 2021 · −5.4% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.
Share count +1.2%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
How management talks about it Promotional

What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.4B

Cash & short-term investments$74M
Receivables$731M
Inventory$506M
Other current assets$106M

Current liabilities$729M

Debt due within a year$1M
Accounts payable$465M
Other current liabilities$263M

Current ratio1.94×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.25×stricter: inventory excluded

Cash ratio0.10×strictest: cash alone against what's due

Working capital$687Mthe cushion left after near-term bills

Debt due this year vs. cash$1M due · $74M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+30.5%the freshest read on whether the business is still growing

Current ratio, recent quarters1.8× → 1.9×

Deeper floors

Tangible book value$705Mequity stripped of goodwill & intangibles

Net current asset value($56M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$270M$144M of it operating leases

Deferred revenue$195Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'27$44M

'28$36M

'29$36M

'30$10M

'31$305M

Bars scaled to the largest single year.

Due in the next 12 months$44Mthe first rung: what must be repaid or rolled over within the year

Within two years$80Mthe near wall, the part most exposed to today’s credit conditions

Biggest single year$305Min 2031the lumpiest maturity, where a refinancing, if needed, is largest

Due over the next five years$430Mthe near slice; the balance sheet carries $431M of debt in all

Against what the business has and earns

Cash & short-term investments, Mar 31, 2026$74M

One year of owner earnings (FY2026)$169M

Together, against $44M due next year5.5×

Cash on hand as of Mar 31, 2026 plus a year’s owner earnings comes to $243M against the $44M due in the twelve months after the Mar 31, 2026 schedule: 5.5 times it.

Maturity schedule extracted from the company’s Mar 31, 2026 annual report and reconciled to the balance-sheet debt.

How the cash was used, 2017–2026

Over the record, the business generated $1.3B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$719M · 57%
Buybacks$68M · 5%
Retained (debt / cash)$486M · 38%

Returned to owners$68M
10% of the owner earnings the business produced over the span, $0 as dividends and $68M as buybacks.
Average price paid for buybacks—
Buybacks ran $68M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count11.4%
The diluted count rose from 48M to 54M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained24%
Of the earnings it kept rather than paid out ($546M over the span), annual owner earnings (first three years vs last three) grew $132M, so each retained $1 added about 0.24 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$489M18% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity24%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$736Mover 10 years buying other businesses, against $719M of capital spent building

$500K written down across 1 year (2020): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2022	Neil Brinker	$2.0M	$713k	($29M)
2023	Neil Brinker	$4.8M	$8.2M	$57M
2024	Neil Brinker	$8.5M	$39.8M	$159M
2025	Neil Brinker	$12.7M	$9.6M	$129M
2026	Neil Brinker	$10.2M	$80.5M	$169M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$22M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 6% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Modine Manufacturing Company is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2026.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?11.4%
Diluted shares grew 11.4% over 2017–2026, even as the company spent $68M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid receivables and inventory outpace sales?31% → 39% of sales
Receivables and inventory grew from $464M to $1.2B while revenue grew 112%: working capital is climbing faster than sales (31% of revenue then, 39% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2026

read the 10-K →

How much of the revenue rides on one buyer?
≈$1.6B · 49% of revenue on the largest customers (TTM)
“Our top five customers, in terms of sales, are in the data center, commercial vehicle, and off-highway markets and our ten largest customers accounted for 49 percent of our net sales in fiscal 2026.”verify →
Which reported numbers are a judgment call?
Management names Revenue recognition, Pension & retirement, Income taxes, Credit & receivables as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Auto Components

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PATKPatrick Industries Inc.	$4.0B	19%	7.4%	12%	7%
VCVisteon Corporation	$3.8B	13%	5.7%	28%	3%
GTXGarrett Motion Inc.	$3.6B	20%	12.2%	58%	8%
PHINPHINIA Inc.	$3.5B	22%	7.3%	8%	5%
MODModine Manufacturing Company	$3.2B	17%	5.4%	12%	3%
ALSNAllison Transmission Holdings Inc.	$3.0B	48%	29.0%	21%	23%
CPSCooper-Standard Holdings Inc.	$2.7B	12%	3.2%	7%	1%
GNTXGentex	$2.5B	36%	23.7%	22%	21%
Group median	—	20%	7.4%	16%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Modine Manufacturing Company has delivered.

Modine Manufacturing Company’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Modine Manufacturing Company earns about $80M on its 2.5% median owner-earnings margin. This year’s 5.3% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($80M) Net of stock comp (−$22M) Steady-state · maintenance capex ($169M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’22→’26+81%/yr

Owner-earnings growth · ’17→’26+25%/yr

Owner-earnings yield—

P/E (3-yr earnings ’24–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $105M on 53M shares outstanding, per the 10-K cover, as of 2026-05-22; net debt $357M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($143M) runs well above depreciation ($80M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $169M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh MOD against another business →

The owners of MOD: the meeting and the votes →

Cite: Owner Scorecard, "Modine Manufacturing Company (MOD), the owner's record," https://ownerscorecard.com/c/MOD, data as of 2026-07-09.

Manual order: ← MO its page in the Manual MOH →

Industry order: ← MGA the Auto Components chapter PATK →