DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
USA - NASDAQ:DRVN - US26210V1026 - Common Stock
14.3 USD
-0.03 (-0.21%)
14.3 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DRVN. DRVN was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of DRVN have multiple concerns. DRVN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DRVN was profitable.
DRVN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DRVN reported negative net income in multiple years.
In the past 5 years DRVN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.39%, DRVN is doing worse than 69.05% of the companies in the same industry.
DRVN has a worse Return On Equity (-36.84%) than 73.81% of its industry peers.
DRVN has a Return On Invested Capital (3.86%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DRVN is significantly below the industry average of 10.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.39% | ||
| ROE | -36.84% | ||
| ROIC | 3.86% |
ROA(3y)-5.83%
ROA(5y)-3.48%
ROE(3y)-42.59%
ROE(5y)-25.51%
ROIC(3y)4.37%
ROIC(5y)3.76%
1.3 Margins
DRVN's Operating Margin of 7.96% is fine compared to the rest of the industry. DRVN outperforms 61.90% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
DRVN's Gross Margin of 48.67% is amongst the best of the industry. DRVN outperforms 88.10% of its industry peers.
DRVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | N/A | ||
| GM | 48.67% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRVN is destroying value.
The number of shares outstanding for DRVN remains at a similar level compared to 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.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that DRVN is in the distress zone and has some risk of bankruptcy.
DRVN has a worse Altman-Z score (0.77) than 71.43% of its industry peers.
DRVN has a debt to FCF ratio of 80.45. This is a negative value and a sign of low solvency as DRVN would need 80.45 years to pay back of all of its debts.
DRVN's Debt to FCF ratio of 80.45 is in line compared to the rest of the industry. DRVN outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that DRVN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.82, DRVN is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 80.45 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.5
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DRVN should not have too much problems paying its short term obligations.
DRVN's Current ratio of 1.11 is on the low side compared to the rest of the industry. DRVN is outperformed by 73.81% of its industry peers.
DRVN has a Quick Ratio of 1.01. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
DRVN has a Quick ratio of 1.01. This is in the lower half of the industry: DRVN underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.68% over the past year.
DRVN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.01% yearly.
DRVN shows a decrease in Revenue. In the last year, the revenue decreased by -4.12%.
DRVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.27% yearly.
EPS 1Y (TTM)22.68%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%2.86%
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.91%
3.2 Future
Based on estimates for the next years, DRVN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.22% on average per year.
DRVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y8.95%
EPS Next 2Y15.1%
EPS Next 3Y14.59%
EPS Next 5Y16.22%
Revenue Next Year-9.8%
Revenue Next 2Y-1.37%
Revenue Next 3Y1.59%
Revenue Next 5Y4.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.02, DRVN is valued correctly.
Based on the Price/Earnings ratio, DRVN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
DRVN is valuated cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of DRVN.
89.29% of the companies in the same industry are more expensive than DRVN, based on the Price/Forward Earnings ratio.
DRVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
DRVN's Enterprise Value to EBITDA ratio is in line with the industry average.
DRVN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.52 | ||
| EV/EBITDA | 12.88 |
4.3 Compensation for Growth
DRVN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DRVN's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y15.1%
EPS Next 3Y14.59%
5. Dividend
5.1 Amount
DRVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.3
-0.03 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.25%
Inst Owner Change0.04%
Ins Owners2.03%
Ins Owner Change-0.09%
Market Cap2.35B
Analysts81
Price Target22.27 (55.73%)
Short Float %11.74%
Short Ratio7.2
Dividend
| Industry Rank | Sector 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)11.33%
Min EPS beat(2)6.09%
Max EPS beat(2)16.56%
EPS beat(4)4
Avg EPS beat(4)26.04%
Min EPS beat(4)6.09%
Max EPS beat(4)64.23%
EPS beat(8)7
Avg EPS beat(8)19.1%
EPS beat(12)10
Avg EPS beat(12)14.05%
EPS beat(16)14
Avg EPS beat(16)15.33%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.42%
Revenue beat(12)4
Avg Revenue beat(12)-1.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.06%
PT rev (1m)0%
PT rev (3m)1.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 9.47 | ||
| P/S | 1.06 | ||
| P/FCF | 79.52 | ||
| P/OCF | 8.11 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.88 |
EPS(TTM)1.19
EY8.32%
EPS(NY)1.51
Fwd EY10.56%
FCF(TTM)0.18
FCFY1.26%
OCF(TTM)1.76
OCFY12.33%
SpS13.53
BVpS4.53
TBVpS-8.29
PEG (NY)1.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.39% | ||
| ROE | -36.84% | ||
| ROCE | 4.88% | ||
| ROIC | 3.86% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 10.34% | ||
| OM | 7.96% | ||
| PM (TTM) | N/A | ||
| GM | 48.67% | ||
| FCFM | 1.33% |
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-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 80.45 | ||
| Debt/EBITDA | 5.91 | ||
| Cap/Depr | 146.58% | ||
| Cap/Sales | 11.71% | ||
| Interest Coverage | 1.26 | ||
| Cash Conversion | 81.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.77 |
F-Score6
WACC7.67%
ROIC/WACC0.5
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)22.68%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%2.86%
EPS Next Y8.95%
EPS Next 2Y15.1%
EPS Next 3Y14.59%
EPS Next 5Y16.22%
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.91%
Revenue Next Year-9.8%
Revenue Next 2Y-1.37%
Revenue Next 3Y1.59%
Revenue Next 5Y4.87%
EBIT growth 1Y-40.39%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year35.39%
EBIT Next 3Y17.69%
EBIT Next 5Y14.31%
FCF growth 1Y107.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.57%
OCF growth 3Y-5.24%
OCF growth 5Y42.29%