DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
USA - NASDAQ:DRVN - US26210V1026 - Common Stock
13.9 USD
-0.4 (-2.8%)
13.9 USD
0 (0%)
DRVN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 79 industry peers in the Diversified Consumer Services industry. DRVN may be in some trouble as it scores bad on both profitability and health. 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.
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
DRVN has a Return On Assets (-4.77%) which is in line with its industry peers.
The Return On Equity of DRVN (-24.96%) is comparable to the rest of the industry.
DRVN has a Return On Invested Capital (3.96%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DRVN is significantly below the industry average of 10.04%.
| 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
DRVN has a better Operating Margin (8.12%) than 62.03% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
The Gross Margin of DRVN (49.26%) is comparable to the rest of the industry.
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
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.
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
DRVN has an Altman-Z score of 0.75. This is a bad value and indicates that DRVN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DRVN (0.75) is comparable to the rest of the industry.
The Debt to FCF ratio of DRVN is 71.20, which is on the high side as it means it would take DRVN, 71.20 years of fcf income to pay off all of its debts.
DRVN has a Debt to FCF ratio (71.20) which is in line with its industry peers.
DRVN has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.44, DRVN is doing worse than 73.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 71.2 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.49
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.90 indicates that DRVN may have some problems paying its short term obligations.
DRVN has a worse Current ratio (0.90) than 65.82% of its industry peers.
DRVN has a Quick Ratio of 0.90. This is a bad value and indicates that DRVN is not financially healthy enough and could expect problems in meeting 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
DRVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.30%, 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.
The Revenue has decreased by -6.96% in the past year.
The Revenue has been growing by 31.27% on average over the past years. This is a very strong growth!
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
DRVN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.22% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.94 indicates a reasonable valuation of DRVN.
Based on the Price/Earnings ratio, DRVN is valued cheaper than 81.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of DRVN to the average of the S&P500 Index (25.89), we can say DRVN is valued rather cheaply.
DRVN is valuated reasonably with a Price/Forward Earnings ratio of 9.20.
DRVN's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRVN is cheaper than 91.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, DRVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
DRVN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 73.42 | ||
| EV/EBITDA | 12.39 |
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 14.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y15.13%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
DRVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.9
-0.4 (-2.8%)
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 Cap2.28B
Revenue(TTM)2.17B
Net Income(TTM)-198.04M
Analysts81
Price Target22.02 (58.42%)
Short Float %12.97%
Short Ratio7.04
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 | 10.94 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.05 | ||
| P/FCF | 73.42 | ||
| P/OCF | 8.53 | ||
| P/B | 2.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.39 |
EPS(TTM)1.27
EY9.14%
EPS(NY)1.51
Fwd EY10.87%
FCF(TTM)0.19
FCFY1.36%
OCF(TTM)1.63
OCFY11.72%
SpS13.19
BVpS4.83
TBVpS-7.96
PEG (NY)1.21
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 | 0.75 |
F-Score5
WACC8.07%
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.