DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
USA - NASDAQ:DRVN - US26210V1026 - Common Stock
15.01 USD
+0.76 (+5.33%)
15.01 USD
0 (0%)
Taking everything into account, DRVN scores 4 out of 10 in our fundamental rating. DRVN was compared to 78 industry peers in the Diversified Consumer Services industry. DRVN has a bad profitability rating. Also its financial health evaluation is rather negative. DRVN is not valued too expensively and it also shows a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: DRVN reported negative net income in multiple years.
DRVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DRVN has a Return On Assets (-6.39%) which is comparable to the rest of the industry.
With a Return On Equity value of -36.84%, DRVN perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
DRVN has a Return On Invested Capital of 3.86%. This is in the better half of the industry: DRVN outperforms 62.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRVN is significantly below the industry average of 9.50%.
| 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
DRVN's Operating Margin of 7.96% is fine compared to the rest of the industry. DRVN outperforms 62.82% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
DRVN has a Gross Margin of 48.67%. This is comparable to the rest of the industry: DRVN outperforms 52.56% of its industry peers.
DRVN's Gross Margin has declined in the last couple of years.
| 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.
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.
DRVN has a worse debt/assets ratio than last year.
2.2 Solvency
DRVN has an Altman-Z score of 0.76. 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 (0.76) is comparable to the rest of the industry.
The Debt to FCF ratio of DRVN is 80.45, which is on the high side as it means it would take DRVN, 80.45 years of fcf income to pay off all of its debts.
DRVN has a Debt to FCF ratio of 80.45. This is in the better half of the industry: DRVN outperforms 60.26% of its industry peers.
DRVN has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.82, DRVN is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 80.45 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.51
WACC7.52%
2.3 Liquidity
DRVN has a Current Ratio of 1.11. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
DRVN has a Current ratio (1.11) which is in line with 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.
DRVN has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.68% 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.
The Revenue has decreased by -4.12% in the past year.
DRVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.27% yearly.
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
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
DRVN is valuated correctly with a Price/Earnings ratio of 12.61.
83.33% 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 26.03. DRVN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.93, the valuation of DRVN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRVN indicates a rather cheap valuation: DRVN is cheaper than 91.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, DRVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 9.93 |
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 indicates a somewhat cheap valuation: DRVN is cheaper than 60.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.46 | ||
| EV/EBITDA | 12.84 |
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)1.4
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 |
15.01
+0.76 (+5.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners42.25%
Inst Owner Change1.17%
Ins Owners2.03%
Ins Owner Change-0.09%
Market Cap2.47B
Revenue(TTM)2.22B
Net Income(TTM)-273846000
Analysts81
Price Target22.02 (46.7%)
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)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)-1.15%
PT rev (3m)-0.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.65%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.11 | ||
| P/FCF | 83.46 | ||
| P/OCF | 8.51 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.84 |
EPS(TTM)1.19
EY7.93%
EPS(NY)1.51
Fwd EY10.07%
FCF(TTM)0.18
FCFY1.2%
OCF(TTM)1.76
OCFY11.75%
SpS13.53
BVpS4.53
TBVpS-8.29
PEG (NY)1.4
PEG (5Y)N/A
Graham Number11.01
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%
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-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 | 0.76 |
F-Score6
WACC7.52%
ROIC/WACC0.51
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 Y9.02%
EPS Next 2Y15.13%
EPS Next 3Y14.7%
EPS Next 5Y16.22%
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-1.34%
Revenue Next 3Y1.6%
Revenue Next 5Y4.87%
EBIT growth 1Y-40.39%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year35.39%
EBIT Next 3Y17.69%
EBIT Next 5Y14.31%
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%
DRIVEN BRANDS HOLDINGS INC / DRVN FAQ
Can you provide the ChartMill fundamental rating for DRIVEN BRANDS HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 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 3 / 10.