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DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis

NASDAQ:DRVN - Nasdaq - US26210V1026 - Common Stock - Currency: USD

18.2401  +0.34 (+1.9%)

Fundamental Rating

4

Taking everything into account, DRVN scores 4 out of 10 in our fundamental rating. DRVN was compared to 83 industry peers in the Commercial Services & Supplies industry. DRVN may be in some trouble as it scores bad on both profitability and health. DRVN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

DRVN had positive earnings in the past year.
DRVN had a positive operating cash flow in the past year.
In multiple years DRVN reported negative net income over the last 5 years.
Each year in the past 5 years DRVN had a positive operating cash flow.
DRVN Yearly Net Income VS EBIT VS OCF VS FCFDRVN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M

1.2 Ratios

DRVN has a Return On Assets of -5.49%. This is in the lower half of the industry: DRVN underperforms 69.88% of its industry peers.
DRVN has a worse Return On Equity (-45.28%) than 78.31% of its industry peers.
DRVN's Return On Invested Capital of 3.78% is in line compared to the rest of the industry. DRVN outperforms 48.19% of its industry peers.
DRVN had an Average Return On Invested Capital over the past 3 years of 4.37%. This is significantly below the industry average of 11.67%.
Industry RankSector Rank
ROA -5.49%
ROE -45.28%
ROIC 3.78%
ROA(3y)-5.83%
ROA(5y)-3.48%
ROE(3y)-42.59%
ROE(5y)-25.51%
ROIC(3y)4.37%
ROIC(5y)3.76%
DRVN Yearly ROA, ROE, ROICDRVN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

The Operating Margin of DRVN (10.16%) is better than 71.08% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
DRVN's Gross Margin of 47.46% is amongst the best of the industry. DRVN outperforms 84.34% of its industry peers.
In the last couple of years the Gross Margin of DRVN has declined.
Industry RankSector Rank
OM 10.16%
PM (TTM) N/A
GM 47.46%
OM growth 3Y-13.67%
OM growth 5Y-4.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.08%
GM growth 5Y-4.39%
DRVN Yearly Profit, Operating, Gross MarginsDRVN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRVN is destroying value.
DRVN has about the same amout of shares outstanding than it did 1 year ago.
DRVN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DRVN is higher compared to a year ago.
DRVN Yearly Shares OutstandingDRVN Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
DRVN Yearly Total Debt VS Total AssetsDRVN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.74, we must say that DRVN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.74, DRVN is doing worse than 79.52% of the companies in the same industry.
DRVN has a debt to FCF ratio of 2529.61. This is a negative value and a sign of low solvency as DRVN would need 2529.61 years to pay back of all of its debts.
DRVN has a Debt to FCF ratio of 2529.61. This is comparable to the rest of the industry: DRVN outperforms 40.96% of its industry peers.
A Debt/Equity ratio of 4.07 is on the high side and indicates that DRVN has dependencies on debt financing.
DRVN's Debt to Equity ratio of 4.07 is on the low side compared to the rest of the industry. DRVN is outperformed by 84.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.07
Debt/FCF 2529.61
Altman-Z 0.74
ROIC/WACC0.49
WACC7.7%
DRVN Yearly LT Debt VS Equity VS FCFDRVN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

A Current Ratio of 1.47 indicates that DRVN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, DRVN perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that DRVN should not have too much problems paying its short term obligations.
The Quick ratio of DRVN (1.33) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 1.33
DRVN Yearly Current Assets VS Current LiabilitesDRVN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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6

3. Growth

3.1 Past

DRVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.67%, which is quite impressive.
The Earnings Per Share has been growing by 9.01% on average over the past years. This is quite good.
The Revenue has decreased by -1.31% in the past year.
The Revenue has been growing by 31.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.67%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%17.39%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.8%

3.2 Future

The Earnings Per Share is expected to grow by 18.94% on average over the next years. This is quite good.
DRVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y8.59%
EPS Next 2Y15.78%
EPS Next 3Y14.44%
EPS Next 5Y18.94%
Revenue Next Year-10.18%
Revenue Next 2Y-1.49%
Revenue Next 3Y1.78%
Revenue Next 5Y5.45%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DRVN Yearly Revenue VS EstimatesDRVN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
DRVN Yearly EPS VS EstimatesDRVN Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

DRVN is valuated correctly with a Price/Earnings ratio of 15.46.
Compared to the rest of the industry, the Price/Earnings ratio of DRVN indicates a somewhat cheap valuation: DRVN is cheaper than 74.70% of the companies listed in the same industry.
DRVN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of DRVN.
Based on the Price/Forward Earnings ratio, DRVN is valued cheaper than 83.13% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, DRVN is valued a bit cheaper.
Industry RankSector Rank
PE 15.46
Fwd PE 11.94
DRVN Price Earnings VS Forward Price EarningsDRVN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRVN is on the same level as its industry peers.
DRVN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 2861.97
EV/EBITDA 13.16
DRVN Per share dataDRVN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DRVN's earnings are expected to grow with 14.44% in the coming years.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y15.78%
EPS Next 3Y14.44%

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0

5. Dividend

5.1 Amount

No dividends for DRVN!.
Industry RankSector Rank
Dividend Yield N/A

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DRIVEN BRANDS HOLDINGS INC

NASDAQ:DRVN (6/3/2025, 1:12:34 PM)

18.2401

+0.34 (+1.9%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners40.35%
Inst Owner Change4.65%
Ins Owners2.36%
Ins Owner Change0.19%
Market Cap3.00B
Analysts78.95
Price Target20.6 (12.94%)
Short Float %15.26%
Short Ratio12.67
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.4%
Min EPS beat(2)16.56%
Max EPS beat(2)64.23%
EPS beat(4)4
Avg EPS beat(4)29.93%
Min EPS beat(4)16.56%
Max EPS beat(4)64.23%
EPS beat(8)6
Avg EPS beat(8)17.44%
EPS beat(12)10
Avg EPS beat(12)14.99%
EPS beat(16)14
Avg EPS beat(16)18.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)4
Avg Revenue beat(12)-1.38%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)-0.8%
PT rev (3m)6.32%
EPS NQ rev (1m)-7.92%
EPS NQ rev (3m)-9.33%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)-2.17%
Revenue NQ rev (3m)-17.93%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-16.81%
Valuation
Industry RankSector Rank
PE 15.46
Fwd PE 11.94
P/S 1.31
P/FCF 2861.97
P/OCF 11.69
P/B 4.66
P/tB N/A
EV/EBITDA 13.16
EPS(TTM)1.18
EY6.47%
EPS(NY)1.53
Fwd EY8.38%
FCF(TTM)0.01
FCFY0.03%
OCF(TTM)1.56
OCFY8.55%
SpS13.9
BVpS3.92
TBVpS-8.72
PEG (NY)1.8
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.49%
ROE -45.28%
ROCE 4.79%
ROIC 3.78%
ROICexc 3.91%
ROICexgc 7.01%
OM 10.16%
PM (TTM) N/A
GM 47.46%
FCFM 0.05%
ROA(3y)-5.83%
ROA(5y)-3.48%
ROE(3y)-42.59%
ROE(5y)-25.51%
ROIC(3y)4.37%
ROIC(5y)3.76%
ROICexc(3y)4.53%
ROICexc(5y)3.95%
ROICexgc(3y)8.5%
ROICexgc(5y)8.05%
ROCE(3y)5.53%
ROCE(5y)4.76%
ROICexcg growth 3Y-5.36%
ROICexcg growth 5Y-30.27%
ROICexc growth 3Y2.34%
ROICexc growth 5Y1.97%
OM growth 3Y-13.67%
OM growth 5Y-4.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.08%
GM growth 5Y-4.39%
F-Score5
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 4.07
Debt/FCF 2529.61
Debt/EBITDA 6.33
Cap/Depr 140.99%
Cap/Sales 11.18%
Interest Coverage 1.66
Cash Conversion 62.04%
Profit Quality N/A
Current Ratio 1.47
Quick Ratio 1.33
Altman-Z 0.74
F-Score5
WACC7.7%
ROIC/WACC0.49
Cap/Depr(3y)263.25%
Cap/Depr(5y)203.37%
Cap/Sales(3y)19.89%
Cap/Sales(5y)15.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.67%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%17.39%
EPS Next Y8.59%
EPS Next 2Y15.78%
EPS Next 3Y14.44%
EPS Next 5Y18.94%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.8%
Revenue Next Year-10.18%
Revenue Next 2Y-1.49%
Revenue Next 3Y1.78%
Revenue Next 5Y5.45%
EBIT growth 1Y-25.36%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year36%
EBIT Next 3Y18.56%
EBIT Next 5Y16.78%
FCF growth 1Y100.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.91%
OCF growth 3Y-5.24%
OCF growth 5Y42.29%