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    Is Modine Manufacturing (MOD) Undervalued As Data Center Cooling Expansion Drives Hiring?

    Simply Wall St·09/25/2026 21:17:17
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    Modine Manufacturing (MOD) is leaning into the data center boom, expanding hiring across southeastern Wisconsin to support its Airedale data center cooling line as demand for energy efficient infrastructure climbs.

    Recent trading has been choppy for Modine Manufacturing, with a 6.54% 7 day share price return and a 4.76% 30 day share price gain, but a 90 day share price return that declined 23.06% as investors reassess earlier enthusiasm.

    Zoom out and the picture looks very different, with a 39.87% year to date share price return and a 1 year total shareholder return of 44.90%. The 3 year total shareholder return is more than 4x and the 5 year figure is extremely large, indicating that investors have been steadily pricing in expectations around data center cooling and broader thermal solutions growth potential as well as shifts in perceived risk.

    Scan for other infrastructure players riding similar demand waves by reviewing the hand picked 39 power grid technology and infrastructure stocks alongside Modine Manufacturing's data center cooling story.

    Recent swings in Modine Manufacturing look like a tug of war between faith in the data center buildout and a reset in expectations. Are investors now paying for business momentum or just sentiment on the chart?

    Most Popular Narrative: 36.5% Undervalued

    Modine Manufacturing closed at $196.95, while the most followed narrative pegs fair value closer to $310, which helps explain why long term holders appear comfortable sitting through recent volatility.

    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 approximately $1 billion in fiscal '26 to $2 billion by fiscal '28. This structural demand from digital infrastructure is expected to materially affect revenue growth and operating leverage over time.

    See why 50 investors see Modine Manufacturing as 37% undervalued.

    Result: Fair Value of $310.29 (UNDERVALUED)

    Still, Modine Manufacturing faces real pressure if data center ramps slip or supply chain issues persist, since slow conversion of backlog could weaken the current positive narrative.

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

    Next Steps

    Feeling torn between enthusiasm and caution around Modine Manufacturing after reading this far? Treat this as a starting point, move quickly to stress test the bullish and bearish angles, and then ground your own view in the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Modine Manufacturing?

    If Modine Manufacturing grabbed your attention, do not stop there. Broaden your watchlist with other opportunities that fit different risk levels, cash flow profiles, and income needs.

    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.