DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
NASDAQ:DRVN - US26210V1026 - Common Stock
18.15 USD
-0.23 (-1.25%)
18.15 USD
0 (0%)
Taking everything into account, DRVN scores 3 out of 10 in our fundamental rating. DRVN was compared to 84 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 correct valuation and a medium 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.
Each year in the past 5 years DRVN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.39%, DRVN is doing worse than 70.24% of the companies in the same industry.
The Return On Equity of DRVN (-36.84%) is worse than 75.00% of its industry peers.
DRVN has a Return On Invested Capital of 3.86%. This is comparable to the rest of the industry: DRVN outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRVN is significantly below the industry average of 10.78%.
| 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
Looking at the Operating Margin, with a value of 7.96%, DRVN is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
DRVN's Operating Margin has declined in the last couple of years.
The Gross Margin of DRVN (48.67%) is better than 88.10% of its industry peers.
In the last couple of years the Gross Margin of DRVN has declined.
| 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.
Compared to 1 year ago, DRVN has about the same amount of shares outstanding.
Compared to 5 years ago, DRVN has less shares outstanding
The debt/assets ratio for DRVN is higher compared to a year ago.
2.2 Solvency
DRVN has an Altman-Z score of 0.88. This is a bad value and indicates that DRVN is not financially healthy and even has some risk of bankruptcy.
DRVN has a Altman-Z score of 0.88. This is in the lower half of the industry: DRVN underperforms 73.81% 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.
The Debt to FCF ratio of DRVN (80.45) is comparable to the rest of the industry.
DRVN has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.82, DRVN is doing worse than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 80.45 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.49
WACC7.94%
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 72.62% 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.
With a Quick ratio value of 1.01, DRVN is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DRVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.68%, which is quite impressive.
Measured over the past years, DRVN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.01% on average per year.
The Revenue has decreased by -4.12% in the past year.
Measured over the past years, DRVN shows a very strong growth in Revenue. The Revenue has been growing by 31.27% on average per year.
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 16.12% on average per year.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y8.95%
EPS Next 2Y15.1%
EPS Next 3Y14.59%
EPS Next 5Y16.12%
Revenue Next Year-9.8%
Revenue Next 2Y-1.37%
Revenue Next 3Y1.57%
Revenue Next 5Y4.83%
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 15.25 indicates a correct valuation of DRVN.
Based on the Price/Earnings ratio, DRVN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DRVN to the average of the S&P500 Index (27.17), we can say DRVN is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.02, which indicates a correct valuation of DRVN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRVN indicates a rather cheap valuation: DRVN is cheaper than 82.14% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.78. DRVN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DRVN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRVN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.92 | ||
| EV/EBITDA | 14.76 |
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 14.59% in the coming years.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y15.1%
EPS Next 3Y14.59%
5. Dividend
5.1 Amount
No dividends for DRVN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.15
-0.23 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.79%
Inst Owner Change0.86%
Ins Owners2.23%
Ins Owner Change0.18%
Market Cap2.98B
Analysts80
Price Target22.27 (22.7%)
Short Float %12.52%
Short Ratio10.6
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)0.91%
PT rev (3m)8.09%
EPS NQ rev (1m)-7.79%
EPS NQ rev (3m)-5.23%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-4.67%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 12.02 | ||
| P/S | 1.34 | ||
| P/FCF | 100.92 | ||
| P/OCF | 10.29 | ||
| P/B | 4.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.76 |
EPS(TTM)1.19
EY6.56%
EPS(NY)1.51
Fwd EY8.32%
FCF(TTM)0.18
FCFY0.99%
OCF(TTM)1.76
OCFY9.72%
SpS13.53
BVpS4.53
TBVpS-8.29
PEG (NY)1.7
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 | 0.88 |
F-Score6
WACC7.94%
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)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 5Y16.12%
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 3Y1.57%
Revenue Next 5Y4.83%
EBIT growth 1Y-40.39%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year36.11%
EBIT Next 3Y18.49%
EBIT Next 5Y14.3%
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%