DRIVEN BRANDS HOLDINGS INC (DRVN) Stock Fundamental Analysis
USA - NASDAQ:DRVN - US26210V1026 - Common Stock
16.89 USD
-0.18 (-1.05%)
16.89 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to DRVN. DRVN was compared to 84 industry peers in the Commercial Services & Supplies 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
DRVN had positive earnings in the past year.
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.
Each year in the past 5 years DRVN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -6.39%, DRVN is not doing good in the industry: 70.24% of the companies in the same industry are doing better.
DRVN has a worse Return On Equity (-36.84%) than 73.81% of its industry peers.
DRVN has a Return On Invested Capital (3.86%) which is in line with 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 10.60%.
| 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 60.71% of its industry peers.
In the last couple of years the Operating Margin of DRVN has declined.
The Gross Margin of DRVN (48.67%) is better than 88.10% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRVN is destroying value.
DRVN has about the same amout of shares outstanding than it did 1 year ago.
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
DRVN has an Altman-Z score of 0.84. 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 of 0.84. This is in the lower half of the industry: DRVN underperforms 71.43% of its industry peers.
DRVN has a debt to FCF ratio of 80.45. This is a negative value and a sign of low solvency as DRVN would need 80.45 years to pay back of all of its debts.
DRVN has a Debt to FCF ratio of 80.45. This is in the lower half of the industry: DRVN underperforms 60.71% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that DRVN has dependencies on debt financing.
The Debt to Equity ratio of DRVN (2.82) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 80.45 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.49
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DRVN should not have too much problems paying its short term obligations.
DRVN has a Current ratio of 1.11. This is in the lower half of the industry: DRVN underperforms 73.81% of its industry peers.
A Quick Ratio of 1.01 indicates that DRVN should not have too much problems paying its short term obligations.
DRVN's Quick ratio of 1.01 is on the low side compared to the rest of the industry. DRVN is outperformed by 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DRVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.68%, which is quite impressive.
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.
The Revenue has decreased by -4.12% 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)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 16.12% on average over the next years. This is quite good.
DRVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y8.95%
EPS Next 2Y15.1%
EPS Next 3Y14.59%
EPS Next 5Y16.12%
Revenue Next Year-9.8%
Revenue Next 2Y-1.37%
Revenue Next 3Y1.57%
Revenue Next 5Y4.83%
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
With a Price/Earnings ratio of 14.19, DRVN is valued correctly.
Based on the Price/Earnings ratio, DRVN is valued cheaper than 80.95% of the companies in the same industry.
DRVN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of DRVN.
Based on the Price/Forward Earnings ratio, DRVN is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. DRVN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRVN is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DRVN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.92 | ||
| EV/EBITDA | 14.15 |
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 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y15.1%
EPS Next 3Y14.59%
5. Dividend
5.1 Amount
No dividends for DRVN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.89
-0.18 (-1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.79%
Inst Owner Change0.86%
Ins Owners2.23%
Ins Owner Change0.05%
Market Cap2.77B
Analysts81
Price Target22.27 (31.85%)
Short Float %13.6%
Short Ratio9.34
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)0.91%
PT rev (3m)1.55%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-7.88%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.18 | ||
| P/S | 1.25 | ||
| P/FCF | 93.92 | ||
| P/OCF | 9.58 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)1.19
EY7.05%
EPS(NY)1.51
Fwd EY8.94%
FCF(TTM)0.18
FCFY1.06%
OCF(TTM)1.76
OCFY10.44%
SpS13.53
BVpS4.53
TBVpS-8.29
PEG (NY)1.59
PEG (5Y)N/A
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%
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-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 | 0.84 |
F-Score6
WACC7.9%
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)22.68%
EPS 3Y9.01%
EPS 5YN/A
EPS Q2Q%2.86%
EPS Next Y8.95%
EPS Next 2Y15.1%
EPS Next 3Y14.59%
EPS Next 5Y16.12%
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-1.37%
Revenue Next 3Y1.57%
Revenue Next 5Y4.83%
EBIT growth 1Y-40.39%
EBIT growth 3Y0.86%
EBIT growth 5Y25%
EBIT Next Year36.11%
EBIT Next 3Y18.49%
EBIT Next 5Y14.3%
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%