DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
NASDAQ:DRVN - Nasdaq - US26210V1026 - Common Stock - Currency: USD
DRVN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. DRVN may be in some trouble as it scores bad on both profitability and health. 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.
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.
1.2 Ratios
The Return On Assets of DRVN (-5.49%) is worse than 69.88% of its industry peers.
DRVN's Return On Equity of -45.28% is on the low side compared to the rest of the industry. DRVN is outperformed by 78.31% of its industry peers.
DRVN's Return On Invested Capital of 3.78% is in line compared to the rest of the industry. DRVN outperforms 48.19% of its industry peers.
DRVN had an Average Return On Invested Capital over the past 3 years of 4.37%. This is significantly below the industry average of 11.67%.
| Industry Rank | Sector 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%
1.3 Margins
The Operating Margin of DRVN (10.16%) is better than 72.29% of its industry peers.
DRVN's Operating Margin has declined in the last couple of years.
The Gross Margin of DRVN (47.46%) is better than 84.34% of its industry peers.
In the last couple of years the Gross Margin of DRVN has declined.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, DRVN has about the same amount of shares outstanding.
Compared to 5 years ago, DRVN has less shares outstanding
Compared to 1 year ago, DRVN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, 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 0.74, DRVN is doing worse than 78.31% of the companies in the same industry.
The Debt to FCF ratio of DRVN is 2529.61, which is on the high side as it means it would take DRVN, 2529.61 years of fcf income to pay off all of its debts.
DRVN's Debt to FCF ratio of 2529.61 is in line compared to the rest of the industry. DRVN outperforms 42.17% of its industry peers.
A Debt/Equity ratio of 4.07 is on the high side and indicates that DRVN has dependencies on debt financing.
The Debt to Equity ratio of DRVN (4.07) is worse than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 2529.61 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.49
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.47 indicates that DRVN should not have too much problems paying its short term obligations.
DRVN has a Current ratio (1.47) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that DRVN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, DRVN is in line with its industry, outperforming 48.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.33 |
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.
DRVN shows a decrease in Revenue. In the last year, the revenue decreased by -1.31%.
The Revenue has been growing by 31.27% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, DRVN will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y9.73%
EPS Next 2Y16.2%
EPS Next 3Y15.34%
EPS Next 5Y17.28%
Revenue Next Year-10.39%
Revenue Next 2Y-1.62%
Revenue Next 3Y1.43%
Revenue Next 5Y4.44%
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.
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
With a Price/Earnings ratio of 14.94, DRVN is valued correctly.
Based on the Price/Earnings ratio, DRVN is valued a bit cheaper than 75.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DRVN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.45, the valuation of DRVN can be described as reasonable.
Based on the Price/Forward Earnings ratio, DRVN is valued cheaply inside the industry as 83.13% of the companies are valued more expensively.
DRVN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DRVN.
DRVN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2766.24 | ||
| EV/EBITDA | 13.26 |
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 15.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y16.2%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
DRVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.63
-0.52 (-2.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
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 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)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)6.44%
PT rev (3m)6.44%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-10.01%
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 11.45 | ||
| P/S | 1.27 | ||
| P/FCF | 2766.24 | ||
| P/OCF | 11.3 | ||
| P/B | 4.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.26 |
EPS(TTM)1.18
EY6.69%
EPS(NY)1.54
Fwd EY8.73%
FCF(TTM)0.01
FCFY0.04%
OCF(TTM)1.56
OCFY8.85%
SpS13.9
BVpS3.92
TBVpS-8.72
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.74 |
F-Score5
WACC7.74%
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 Y9.73%
EPS Next 2Y16.2%
EPS Next 3Y15.34%
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-1.62%
Revenue Next 3Y1.43%
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%