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DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis

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

17.63  -0.52 (-2.87%)

After market: 17.63 0 (0%)

Fundamental Rating

4

Taking everything into account, DRVN scores 4 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate.


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

The Return On Assets of DRVN (-5.49%) is worse than 68.67% of its industry peers.
DRVN has a Return On Equity of -45.28%. This is in the lower half of the industry: DRVN underperforms 77.11% of its industry peers.
With a Return On Invested Capital value of 3.78%, DRVN perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DRVN 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

DRVN has a Operating Margin of 10.16%. This is in the better half of the industry: DRVN outperforms 72.29% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.46%, DRVN belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
DRVN's Gross Margin has declined in the last couple of years.
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

DRVN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DRVN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for DRVN has been reduced compared to 5 years ago.
Compared to 1 year ago, DRVN has a worse debt to assets ratio.
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 0.73, we must say that DRVN is in the distress zone and has some risk of bankruptcy.
DRVN has a worse Altman-Z score (0.73) than 79.52% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2529.61, DRVN is in line with its industry, outperforming 42.17% of the companies in the same industry.
DRVN has a Debt/Equity ratio of 4.07. This is a high value indicating a heavy dependency on external financing.
DRVN has a worse Debt to Equity ratio (4.07) than 83.13% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.07
Debt/FCF 2529.61
Altman-Z 0.73
ROIC/WACC0.49
WACC7.78%
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

DRVN has a Current Ratio of 1.47. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
DRVN's Current ratio of 1.47 is in line compared to the rest of the industry. DRVN outperforms 43.37% of its industry peers.
DRVN has a Quick Ratio of 1.33. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
DRVN's Quick ratio of 1.33 is in line compared to the rest of the industry. DRVN outperforms 48.19% of its industry peers.
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.
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 decrease in Revenue. The Revenue has decreased by -1.31% in the last 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)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

Based on estimates for the next years, DRVN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.28% on average per year.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y9.83%
EPS Next 2Y16.11%
EPS Next 3Y15.18%
EPS Next 5Y17.28%
Revenue Next Year-10.39%
Revenue Next 2Y-1.58%
Revenue Next 3Y1.44%
Revenue Next 5Y4.44%

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 500M 1B 1.5B 2B 2.5B
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

A Price/Earnings ratio of 14.94 indicates a correct valuation of DRVN.
Compared to the rest of the industry, the Price/Earnings ratio of DRVN indicates a somewhat cheap valuation: DRVN is cheaper than 77.11% of the companies listed in the same industry.
DRVN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of DRVN.
85.54% of the companies in the same industry are more expensive than DRVN, based on the Price/Forward Earnings ratio.
DRVN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 14.94
Fwd PE 11.47
DRVN Price Earnings VS Forward Price EarningsDRVN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 2766.24
EV/EBITDA 13.05
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.
DRVN's earnings are expected to grow with 15.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y16.11%
EPS Next 3Y15.18%

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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 (7/11/2025, 8:06:02 PM)

After market: 17.63 0 (0%)

17.63

-0.52 (-2.87%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners42.09%
Inst Owner Change0%
Ins Owners2.23%
Ins Owner Change0.19%
Market Cap2.90B
Analysts80
Price Target21.93 (24.39%)
Short Float %14.02%
Short Ratio12.22
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%
PT rev (3m)6.44%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-7.97%
EPS NY rev (1m)1.14%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
Industry RankSector Rank
PE 14.94
Fwd PE 11.47
P/S 1.27
P/FCF 2766.24
P/OCF 11.3
P/B 4.5
P/tB N/A
EV/EBITDA 13.05
EPS(TTM)1.18
EY6.69%
EPS(NY)1.54
Fwd EY8.72%
FCF(TTM)0.01
FCFY0.04%
OCF(TTM)1.56
OCFY8.85%
SpS13.9
BVpS3.92
TBVpS-8.72
PEG (NY)1.52
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 0.73
F-Score5
WACC7.78%
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 Y9.83%
EPS Next 2Y16.11%
EPS Next 3Y15.18%
EPS Next 5Y17.28%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.8%
Revenue Next Year-10.39%
Revenue Next 2Y-1.58%
Revenue Next 3Y1.44%
Revenue Next 5Y4.44%
EBIT growth 1Y-25.36%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year36%
EBIT Next 3Y18.56%
EBIT Next 5Y15.74%
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%