DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
USA - NASDAQ:DRVN - US26210V1026 - Common Stock
13.53 USD
-0.11 (-0.81%)
13.53 USD
0 (0%)
Taking everything into account, DRVN scores 3 out of 10 in our fundamental rating. DRVN was compared to 79 industry peers in the Diversified Consumer Services 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
In the past year DRVN was profitable.
In the past year DRVN had a positive cash flow from operations.
In multiple years DRVN reported negative net income over the last 5 years.
DRVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DRVN has a Return On Assets (-4.77%) which is comparable to the rest of the industry.
The Return On Equity of DRVN (-24.96%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.96%, DRVN is in line with its industry, outperforming 59.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DRVN is significantly below the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.77% | ||
| ROE | -24.96% | ||
| ROIC | 3.96% |
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
The Operating Margin of DRVN (8.12%) is better than 60.76% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
DRVN has a Gross Margin of 49.26%. This is comparable to the rest of the industry: DRVN outperforms 51.90% of its industry peers.
DRVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.12% | ||
| PM (TTM) | N/A | ||
| GM | 49.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRVN is destroying value.
The number of shares outstanding for DRVN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DRVN has less shares outstanding
DRVN has a worse debt/assets ratio than last year.
2.2 Solvency
DRVN has an Altman-Z score of 0.74. 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 (0.74) which is comparable to the rest of the industry.
DRVN has a debt to FCF ratio of 71.20. This is a negative value and a sign of low solvency as DRVN would need 71.20 years to pay back of all of its debts.
The Debt to FCF ratio of DRVN (71.20) is comparable to the rest of the industry.
DRVN has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
DRVN has a worse Debt to Equity ratio (2.44) than 73.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 71.2 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.49
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.90 indicates that DRVN may have some problems paying its short term obligations.
With a Current ratio value of 0.90, DRVN is not doing good in the industry: 67.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that DRVN may have some problems paying its short term obligations.
The Quick ratio of DRVN (0.80) is worse than 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.30% over the past year.
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.
DRVN shows a decrease in Revenue. In the last year, the revenue decreased by -6.96%.
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)23.3%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%30.77%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.46%
3.2 Future
The Earnings Per Share is expected to grow by 16.22% on average over the next years. This is quite good.
Based on estimates for the next years, DRVN will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y9.02%
EPS Next 2Y15.13%
EPS Next 3Y14.7%
EPS Next 5Y16.22%
Revenue Next Year-9.8%
Revenue Next 2Y-1.34%
Revenue Next 3Y1.6%
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 10.65, the valuation of DRVN can be described as very reasonable.
Based on the Price/Earnings ratio, DRVN is valued cheaply inside the industry as 81.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.07, DRVN is valued rather cheaply.
DRVN is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
89.87% of the companies in the same industry are more expensive than DRVN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DRVN to the average of the S&P500 Index (34.08), we can say DRVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
DRVN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DRVN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.46 | ||
| EV/EBITDA | 12.22 |
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 14.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y15.13%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
No dividends for DRVN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.53
-0.11 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners42.25%
Inst Owner Change-0.56%
Ins Owners2.03%
Ins Owner Change-0.19%
Market Cap2.22B
Revenue(TTM)2.17B
Net Income(TTM)-198.04M
Analysts81
Price Target22.02 (62.75%)
Short Float %12.74%
Short Ratio6.42
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)7.83%
Min EPS beat(2)6.09%
Max EPS beat(2)9.57%
EPS beat(4)4
Avg EPS beat(4)24.11%
Min EPS beat(4)6.09%
Max EPS beat(4)64.23%
EPS beat(8)7
Avg EPS beat(8)19.31%
EPS beat(12)10
Avg EPS beat(12)13.63%
EPS beat(16)14
Avg EPS beat(16)14.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.63%
Revenue beat(12)3
Avg Revenue beat(12)-2.02%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)-1.15%
PT rev (3m)-0.25%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-1.51%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 8.95 | ||
| P/S | 1.03 | ||
| P/FCF | 71.46 | ||
| P/OCF | 8.3 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)1.27
EY9.39%
EPS(NY)1.51
Fwd EY11.17%
FCF(TTM)0.19
FCFY1.4%
OCF(TTM)1.63
OCFY12.04%
SpS13.19
BVpS4.83
TBVpS-7.96
PEG (NY)1.18
PEG (5Y)N/A
Graham Number11.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.77% | ||
| ROE | -24.96% | ||
| ROCE | 5.02% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 11.19% | ||
| OM | 8.12% | ||
| PM (TTM) | N/A | ||
| GM | 49.26% | ||
| FCFM | 1.44% |
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%
ROICexgc growth 3Y-5.36%
ROICexgc 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 71.2 | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 135.95% | ||
| Cap/Sales | 10.92% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 76.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.74 |
F-Score5
WACC8.02%
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)23.3%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%30.77%
EPS Next Y9.02%
EPS Next 2Y15.13%
EPS Next 3Y14.7%
EPS Next 5Y16.22%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y16.83%
Revenue growth 5Y31.27%
Sales Q2Q%-9.46%
Revenue Next Year-9.8%
Revenue Next 2Y-1.34%
Revenue Next 3Y1.6%
Revenue Next 5Y4.87%
EBIT growth 1Y-41.93%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year35.39%
EBIT Next 3Y17.69%
EBIT Next 5Y14.31%
FCF growth 1Y107.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.84%
OCF growth 3Y-5.24%
OCF growth 5Y42.29%
DRIVEN BRANDS HOLDINGS INC / DRVN FAQ
Can you provide the ChartMill fundamental rating for DRIVEN BRANDS HOLDINGS INC?
ChartMill assigns a fundamental rating of 3 / 10 to DRVN.
Can you provide the valuation status for DRIVEN BRANDS HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to DRIVEN BRANDS HOLDINGS INC (DRVN). This can be considered as Fairly Valued.
Can you provide the profitability details for DRIVEN BRANDS HOLDINGS INC?
DRIVEN BRANDS HOLDINGS INC (DRVN) has a profitability rating of 3 / 10.
Can you provide the financial health for DRVN stock?
The financial health rating of DRIVEN BRANDS HOLDINGS INC (DRVN) is 1 / 10.