On August 05, 2026, Modine Manufacturing Co MOD shares fell 3.5% today, closing at $194.61. Over the past year, the stock has experienced a high of $323.25 and a low of $111.18, reflecting significant volatility in its price performance.
- GF Valueâ„¢ verdict: Current price of $194.61 is 27.5% above the GF Valueâ„¢ estimate of $152.69, indicating the stock is overvalued.
- GF Scoreâ„¢ of 85/100 suggests a strong overall performance relative to its peers.
- Insider activity shows $27.1M in sales over the last three months with no insider purchases, indicating a lack of confidence from insiders.
Is MOD Overvalued or Undervalued?
According to the GF Valueâ„¢, which is GuruFocus' proprietary estimate of a company's intrinsic value based on historical trading multiples, business growth, and future performance projections, Modine Manufacturing Co is currently overvalued. The current market price of $194.61 is significantly above the GF Valueâ„¢ of $152.69, resulting in a 27.5% overvaluation. This could pose a risk for potential investors, as buying into an overvalued company may lead to diminished returns if the market corrects itself.
The GF Valuation label categorizes the stock as "Modestly Overvalued," which suggests that while there is some intrinsic value, the current price does not offer a sufficient margin of safety for new investors. The overvaluation implies that the stock may not be a safe buy at its current levels, and prospective investors should weigh this risk against their investment strategy.
How Does MOD's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 73.2x | 23.7x (5-Year Median) |
| Forward P/E | 25.6x | N/A |
The current P/E ratio of 73.2x is significantly above its 5-year median P/E of 23.7x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Valueâ„¢ verdict that suggests Modine is overvalued, reinforcing the notion that current investors may be paying a higher price relative to the company's earnings potential.
What Does MOD's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a comprehensive metric that evaluates a company's performance against various criteria including financial strength, profitability, growth, valuation, and momentum. Modine's GF Scoreâ„¢ of 85/100 reflects a strong overall performance, with notable strengths in growth and momentum, while its valuation rank is relatively weaker.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85 |
| Financial Strength | 7/10 |
| Profitability | 7/10 |
| Growth | 8/10 |
| Valuation | 5/10 |
| Momentum | 10/10 |
In summary, while Modine exhibits strong growth and momentum rankings, its valuation score of 5/10 suggests it is less favorable in terms of pricing. The financial strength and profitability ranks of 7/10 indicate that the company maintains a solid foundation, but the valuation concerns call for caution.
What Are Gurus and Insiders Doing with MOD?
Currently, seven gurus hold Modine Manufacturing Co stock, with four increasing their positions and four trimming their stakes in recent quarters. This mixed activity suggests a divided sentiment among institutional investors regarding the stock’s potential. The insider activity, revealing a sale of $27.1 million in shares over the last three months without any insider buying, signals potential caution from those closest to the company.
Such insider selling, coupled with the mixed guru sentiment, raises questions about the company's future performance and may indicate a lack of confidence in the stock's current valuation. Investors often interpret significant insider selling as a bearish signal, suggesting that insiders may believe the stock is overpriced at current levels.
What This Means for Investors
In conclusion, based on the GF Valueâ„¢ estimate, Modine Manufacturing Co appears to be overvalued at the current price of $194.61. With a significant premium over the GF Valueâ„¢ and concerning insider activity, prospective investors may want to approach with caution. For those looking to further analyze Modine's financial health and market position, more detailed insights can be found on the Modine Manufacturing Co MOD stock page.
Frequently Asked Questions
What is MOD's GF Scoreâ„¢?
MOD's GF Scoreâ„¢ is 85/100, indicating a strong overall performance relative to its peers, suggesting good growth and momentum.
Is MOD overvalued or undervalued?
MOD is currently overvalued, with a price of $194.61 being 27.5% above its GF Valueâ„¢ estimate of $152.69.
What is MOD's P/E ratio?
MOD's P/E (TTM) is 73.2x, which is significantly higher than its 5-year median of 23.7x, indicating the stock is trading at a considerable premium.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
