Modine Looks Like A Buy After Further Analysis

Summary:

  • Modine aims to triple data center cooling revenue to $1.1 billion in three years.
  • The strategic 80/20 shift, focusing on high-growth, high-margin businesses, has improved financials, with significant growth in MOD’s Climate Solutions segment.
  • Acquisitions like Scott Springfield Manufacturing enhance the Company’s capabilities and competitive advantage in the high-growth data center cooling market.
  • Despite potential market risks, Modine’s expanding margins and free cash flow growth make it a buy for long-term investors.

Side view of woman working in illuminated server room

Erik Isakson

Investment Thesis

Modine Manufacturing’s (NYSE:MOD) management sees the potential to generate roughly $1.1 billion in data center cooling revenue within three years. That would triple its current data center sales and nearly double its current total Climate Solutions revenue. It


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MOD, TT, NEE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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