DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
NASDAQ:DRVN - Nasdaq - US26210V1026 - Common Stock - Currency: USD
Taking everything into account, DRVN scores 3 out of 10 in our fundamental rating. DRVN was compared to 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of DRVN have multiple concerns. DRVN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DRVN had positive earnings in the past year.
In the past year DRVN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DRVN reported negative net income in multiple years.
Each year in the past 5 years DRVN had a positive operating cash flow.
1.2 Ratios
DRVN has a Return On Assets of -5.56%. This is in the lower half of the industry: DRVN underperforms 68.67% of its industry peers.
Looking at the Return On Equity, with a value of -48.16%, DRVN is doing worse than 79.52% of the companies in the same industry.
DRVN has a Return On Invested Capital (4.10%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DRVN is significantly below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.56% | ||
| ROE | -48.16% | ||
| ROIC | 4.1% |
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
Looking at the Operating Margin, with a value of 10.71%, DRVN is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
DRVN's Operating Margin has declined in the last couple of years.
DRVN has a better Gross Margin (46.40%) than 77.11% of its industry peers.
DRVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.71% | ||
| PM (TTM) | N/A | ||
| GM | 46.4% |
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.
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.
Compared to 1 year ago, DRVN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that DRVN is in the distress zone and has some risk of bankruptcy.
DRVN has a worse Altman-Z score (0.75) than 78.31% of its industry peers.
DRVN has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.38, DRVN is doing worse than 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.55
WACC7.42%
2.3 Liquidity
DRVN has a Current Ratio of 1.52. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DRVN (1.52) is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that DRVN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, DRVN perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.58% 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.
Looking at the last year, DRVN shows a small growth in Revenue. The Revenue has grown by 1.54% in the last year.
The Revenue has been growing by 31.27% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.58%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%57.89%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%1.9%
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 Y8.1%
EPS Next 2Y16.79%
EPS Next 3Y17.94%
EPS Next 5Y18.94%
Revenue Next Year-9.47%
Revenue Next 2Y-0.71%
Revenue Next 3Y4.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.03 indicates a correct valuation of DRVN.
77.11% of the companies in the same industry are more expensive than DRVN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. DRVN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.90, which indicates a correct valuation of DRVN.
Based on the Price/Forward Earnings ratio, DRVN is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
DRVN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRVN indicates a somewhat cheap valuation: DRVN is cheaper than 60.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DRVN's earnings are expected to grow with 17.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)N/A
EPS Next 2Y16.79%
EPS Next 3Y17.94%
5. Dividend
5.1 Amount
No dividends for DRVN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.13
+0.39 (+2.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners40.35%
Inst Owner Change-0.08%
Ins Owners2.36%
Ins Owner Change0.1%
Market Cap2.81B
Analysts78.95
Price Target20.77 (21.25%)
Short Float %10.25%
Short Ratio11.7
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)40.74%
Min EPS beat(2)17.26%
Max EPS beat(2)64.23%
EPS beat(4)4
Avg EPS beat(4)30.72%
Min EPS beat(4)17.26%
Max EPS beat(4)64.23%
EPS beat(8)6
Avg EPS beat(8)16.35%
EPS beat(12)10
Avg EPS beat(12)16%
EPS beat(16)14
Avg EPS beat(16)29.93%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)-3.07%
Revenue beat(4)0
Avg Revenue beat(4)-3.77%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)-3.07%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.03%
Revenue beat(16)8
Avg Revenue beat(16)1.39%
PT rev (1m)0.81%
PT rev (3m)7.18%
EPS NQ rev (1m)4.63%
EPS NQ rev (3m)-23.09%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.06%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-18.06%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-16.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 13.9 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 11.65 | ||
| P/B | 4.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)1.14
EY6.65%
EPS(NY)1.23
Fwd EY7.19%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)1.47
OCFY8.58%
SpS14.24
BVpS3.7
TBVpS-8.9
PEG (NY)1.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.56% | ||
| ROE | -48.16% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 7.64% | ||
| OM | 10.71% | ||
| PM (TTM) | N/A | ||
| GM | 46.4% | ||
| FCFM | N/A |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 153.15% | ||
| Cap/Sales | 12.33% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 55.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.75 |
F-Score5
WACC7.42%
ROIC/WACC0.55
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)22.58%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%57.89%
EPS Next Y8.1%
EPS Next 2Y16.79%
EPS Next 3Y17.94%
EPS Next 5Y18.94%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%1.9%
Revenue Next Year-9.47%
Revenue Next 2Y-0.71%
Revenue Next 3Y4.46%
Revenue Next 5Y5.45%
EBIT growth 1Y-19.34%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year37.14%
EBIT Next 3Y21.19%
EBIT Next 5Y16.78%
FCF growth 1Y86.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.67%
OCF growth 3Y-5.24%
OCF growth 5Y42.29%