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DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis

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

14.92  -0.22 (-1.45%)

After market: 14.92 0 (0%)

Fundamental Rating

4

Overall DRVN gets a fundamental rating of 4 out of 10. We evaluated DRVN against 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of DRVN while its profitability can be described as average. DRVN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year DRVN was profitable.
DRVN had a positive operating cash flow in the past year.
In multiple years DRVN reported negative net income over the last 5 years.
In the past 5 years DRVN always reported a positive cash flow from operatings.
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 0 200M -200M -400M -600M

1.2 Ratios

Looking at the Return On Assets, with a value of 0.11%, DRVN is doing worse than 60.98% of the companies in the same industry.
DRVN has a Return On Equity (0.66%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.56%, DRVN perfoms like the industry average, outperforming 42.68% 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 10.12%.
The last Return On Invested Capital (3.56%) for DRVN is above the 3 year average (3.35%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.11%
ROE 0.66%
ROIC 3.56%
ROA(3y)-3.92%
ROA(5y)-2.29%
ROE(3y)-26.34%
ROE(5y)-15.35%
ROIC(3y)3.35%
ROIC(5y)2.96%
DRVN Yearly ROA, ROE, ROICDRVN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80

1.3 Margins

DRVN has a Profit Margin of 0.27%. This is comparable to the rest of the industry: DRVN outperforms 41.46% of its industry peers.
The Operating Margin of DRVN (13.00%) is better than 78.05% of its industry peers.
In the last couple of years the Operating Margin of DRVN has grown nicely.
DRVN has a Gross Margin of 46.52%. This is amongst the best in the industry. DRVN outperforms 81.71% of its industry peers.
In the last couple of years the Gross Margin of DRVN has declined.
Industry RankSector Rank
OM 13%
PM (TTM) 0.27%
GM 46.52%
OM growth 3Y0.94%
OM growth 5Y2.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.42%
GM growth 5Y-5.94%
DRVN Yearly Profit, Operating, Gross MarginsDRVN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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3

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 has been reduced compared to 1 year ago.
DRVN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DRVN is higher compared to a year ago.
DRVN Yearly Shares OutstandingDRVN Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 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 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.79, we must say that DRVN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, DRVN is doing worse than 75.61% of the companies in the same industry.
A Debt/Equity ratio of 2.84 is on the high side and indicates that DRVN has dependencies on debt financing.
The Debt to Equity ratio of DRVN (2.84) is worse than 86.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.84
Debt/FCF N/A
Altman-Z 0.79
ROIC/WACC0.53
WACC6.73%
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 0 1B 2B

2.3 Liquidity

A Current Ratio of 1.90 indicates that DRVN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.90, DRVN is doing good in the industry, outperforming 70.73% of the companies in the same industry.
DRVN has a Quick Ratio of 1.72. This is a normal value and indicates that DRVN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DRVN (1.72) is better than 75.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.72
DRVN Yearly Current Assets VS Current LiabilitesDRVN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.04% over the past year.
The Revenue has been growing slightly by 1.71% in the past year.
The Revenue has been growing by 36.14% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)4.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y36.59%
Revenue growth 5Y36.14%
Sales Q2Q%1.83%

3.2 Future

DRVN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.90% yearly.
DRVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.99% yearly.
EPS Next Y13.23%
EPS Next 2Y16.32%
EPS Next 3Y20.56%
EPS Next 5Y22.9%
Revenue Next Year1.4%
Revenue Next 2Y4.63%
Revenue Next 3Y6.14%
Revenue Next 5Y7.99%

3.3 Evolution

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 1B 2B 3B
DRVN Yearly EPS VS EstimatesDRVN Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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5

4. Valuation

4.1 Price/Earnings Ratio

DRVN is valuated correctly with a Price/Earnings ratio of 14.49.
Based on the Price/Earnings ratio, DRVN is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, DRVN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.86, the valuation of DRVN can be described as reasonable.
DRVN's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRVN is cheaper than 87.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. DRVN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.49
Fwd PE 11.86
DRVN Price Earnings VS Forward Price EarningsDRVN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DRVN is valued a bit cheaper than 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.44
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 20.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y16.32%
EPS Next 3Y20.56%

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0

5. Dividend

5.1 Amount

DRVN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DRIVEN BRANDS HOLDINGS INC

NASDAQ:DRVN (2/21/2025, 8:14:27 PM)

After market: 14.92 0 (0%)

14.92

-0.22 (-1.45%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-25 2025-02-25/amc
Inst Owners38.33%
Inst Owner Change1.97%
Ins Owners2.38%
Ins Owner Change0.18%
Market Cap2.45B
Analysts78.95
Price Target19.38 (29.89%)
Short Float %8.82%
Short Ratio15.86
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)19.47%
Min EPS beat(2)17.26%
Max EPS beat(2)21.68%
EPS beat(4)3
Avg EPS beat(4)14.5%
Min EPS beat(4)-0.65%
Max EPS beat(4)21.68%
EPS beat(8)6
Avg EPS beat(8)8.39%
EPS beat(12)10
Avg EPS beat(12)11.7%
EPS beat(16)13
Avg EPS beat(16)20.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.87%
Min Revenue beat(2)-4.68%
Max Revenue beat(2)-3.07%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)-3.07%
Revenue beat(8)1
Avg Revenue beat(8)-2.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)9
Avg Revenue beat(16)1.62%
PT rev (1m)0%
PT rev (3m)7.73%
EPS NQ rev (1m)1.55%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 14.49
Fwd PE 11.86
P/S 1.05
P/FCF N/A
P/OCF 10.57
P/B 2.54
P/tB N/A
EV/EBITDA 10.44
EPS(TTM)1.03
EY6.9%
EPS(NY)1.26
Fwd EY8.43%
FCF(TTM)-0.62
FCFYN/A
OCF(TTM)1.41
OCFY9.46%
SpS14.19
BVpS5.87
TBVpS-6.96
PEG (NY)1.1
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.11%
ROE 0.66%
ROCE 5.64%
ROIC 3.56%
ROICexc 3.7%
ROICexgc 6.25%
OM 13%
PM (TTM) 0.27%
GM 46.52%
FCFM N/A
ROA(3y)-3.92%
ROA(5y)-2.29%
ROE(3y)-26.34%
ROE(5y)-15.35%
ROIC(3y)3.35%
ROIC(5y)2.96%
ROICexc(3y)3.54%
ROICexc(5y)3.1%
ROICexgc(3y)7.16%
ROICexgc(5y)12.58%
ROCE(3y)5.31%
ROCE(5y)4.68%
ROICexcg growth 3Y10.92%
ROICexcg growth 5Y-31.07%
ROICexc growth 3Y27.29%
ROICexc growth 5Y3.49%
OM growth 3Y0.94%
OM growth 5Y2.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.42%
GM growth 5Y-5.94%
F-Score9
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 2.84
Debt/FCF N/A
Debt/EBITDA 5.65
Cap/Depr 184.44%
Cap/Sales 14.31%
Interest Coverage 2.06
Cash Conversion 47.92%
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.72
Altman-Z 0.79
F-Score9
WACC6.73%
ROIC/WACC0.53
Cap/Depr(3y)259.72%
Cap/Depr(5y)196.05%
Cap/Sales(3y)19.43%
Cap/Sales(5y)13.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30%
EPS Next Y13.23%
EPS Next 2Y16.32%
EPS Next 3Y20.56%
EPS Next 5Y22.9%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y36.59%
Revenue growth 5Y36.14%
Sales Q2Q%1.83%
Revenue Next Year1.4%
Revenue Next 2Y4.63%
Revenue Next 3Y6.14%
Revenue Next 5Y7.99%
EBIT growth 1Y-4.62%
EBIT growth 3Y37.87%
EBIT growth 5Y39.82%
EBIT Next Year47.47%
EBIT Next 3Y23.65%
EBIT Next 5Y21.48%
FCF growth 1Y-12.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.54%
OCF growth 3Y40.94%
OCF growth 5Y43.39%