Driven Brands Holdings (DRVN)
NASDAQ:DRVN
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Driven Brands Holdings
(NASDAQ:DRVN)
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Rating:56Neutral
Price Target:
$16.50
▲(24.91% Upside)
Action:UpgradedDate:01/28/26
The score is held back primarily by weak financial performance (declining TTM growth, negative profitability, and high leverage). Technicals and recent updates are more supportive—momentum is positive and earnings commentary/corporate actions emphasize Take 5 strength and debt reduction—but valuation remains constrained by losses (negative P/E).
Positive Factors
High‑margin Take 5 growth
Sustained Take 5 same‑store growth and a 35% adjusted EBITDA margin indicate a scalable, repeatable quick‑service oil change model. High margin, unit economics and continued unit openings support durable cash generation and franchise roll‑out over the next several years.
Negative Factors
High leverage
A debt-to-equity ratio near 3.5 is a persistent constraint on strategic flexibility, increasing interest burden and refinancing risk. High leverage limits investment in growth initiatives and makes the company more vulnerable to economic downturns despite asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑margin Take 5 growth
Sustained Take 5 same‑store growth and a 35% adjusted EBITDA margin indicate a scalable, repeatable quick‑service oil change model. High margin, unit economics and continued unit openings support durable cash generation and franchise roll‑out over the next several years.
Read all positive factors
Driven Brands Holdings (DRVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.10B
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)10.8
Beta (1Y)0.70
Revenue Growth-6.96%
EPS Growth-3223.14%
CountryUS
Employees10,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)N/A
Shares Outstanding164,454,220
10 Day Avg. Volume999,380
30 Day Avg. Volume1,979,428
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)4.28
Price to Sales (P/S)1.11
P/FCF Ratio-55.26
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue2.17
Enterprise Value/Gross Profit4.16
Enterprise Value/Ebitda314.28
Forecast
1Y Price Target
$18.92Price Target Upside43.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Driven Brands Holdings Business Overview & Revenue Model
Company Description
Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. The company offers various services, such as paint, collision, glass, v...
How the Company Makes Money
Driven Brands generates revenue through multiple streams, primarily from service fees charged at its franchise and company-owned locations. This includes revenue from automotive maintenance and repair services, collision repair, and detailing serv...
Driven Brands Holdings Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.17B | 2.34B | 2.30B | 2.03B | 1.47B | 904.20M |
| Gross Profit | 1.13B | 1.23B | 1.03B | 967.51M | 725.01M | 557.24M |
| EBITDA | 14.96M | 27.71M | -506.24M | 329.59M | 223.58M | 164.92M |
| Net Income | -198.04M | -292.50M | -744.96M | 43.19M | 9.63M | -4.20M |
Balance Sheet | ||||||
| Total Assets | 4.15B | 5.26B | 5.91B | 6.50B | 5.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 225.98M | 169.95M | 176.52M | 227.11M | 523.41M | 172.61M |
| Total Debt | 2.76B | 4.00B | 4.28B | 3.92B | 3.31B | 2.94B |
| Total Liabilities | 3.36B | 4.65B | 5.00B | 4.85B | 4.21B | 3.55B |
| Stockholders Equity | 793.49M | 607.33M | 906.08M | 1.65B | 1.64B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 41.33M | -47.06M | -361.31M | -239.03M | 123.07M | 31.53M |
| Operating Cash Flow | 269.10M | 241.45M | 235.17M | 197.18M | 283.83M | 83.99M |
| Investing Cash Flow | 257.44M | 59.02M | -451.41M | -840.28M | -814.94M | -57.32M |
| Financing Cash Flow | -572.41M | -302.84M | 170.70M | 343.37M | 885.54M | 118.64M |
Driven Brands Holdings Technical Analysis
Positive
13.21
Price Trends
13.03
Positive
14.12
Negative
15.30
Negative
Market Momentum
0.15
Negative
57.96
Neutral
68.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRVN, the sentiment is Positive. The current price of 13.21 is above the 20-day moving average (MA) of 12.47, above the 50-day MA of 13.03, and below the 200-day MA of 15.30, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 68.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRVN.
Driven Brands Holdings Risk Analysis
Driven Brands Holdings disclosed 63 risk factors in its most recent earnings report. Driven Brands Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Driven Brands Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.20B | 11.20 | 16.04% | 3.14% | 2.25% | 8.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.40B | 10.30 | 12.08% | 0.64% | 8.56% | 17.84% | |
58 Neutral | $6.72B | 12.12 | 26.70% | ― | 6.06% | -1.71% | |
57 Neutral | $5.74B | 25.71 | 4.05% | ― | 0.12% | 2.78% | |
56 Neutral | $2.10B | 10.84 | -28.42% | ― | -6.96% | -3223.14% | |
56 Neutral | $2.21B | 11.15 | 11.15% | 2.27% | 9.09% | -33.59% |
* Consumer Cyclical Sector Average
DRVN
Driven Brands Holdings
13.21
-2.56
-16.23%
AN
AutoNation
207.99
44.48
27.20%
KMX
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40.88
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LAD
Lithia Motors
283.04
1.38
0.49%
PAG
Penske Automotive Group
161.32
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10.40%
SAH
Sonic Automotive
70.70
13.77
24.18%
Driven Brands Holdings Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Driven Brands Completes IMO Sale to Refocus Portfolio
Positive
Jan 27, 2026
On January 27, 2026, Driven Brands Holdings Inc. announced it had completed the sale of IMO, its international car wash business, to Franchise Equity Partners for total aggregate consideration of approximately €411 million. Management descri...
Business Operations and StrategyExecutive/Board Changes
Driven Brands Appoints Timothy Johnson to Board, Audit Committee
Positive
Dec 22, 2025
On December 22, 2025, Driven Brands Holdings announced that Timothy Johnson had been elected as an independent director to its Board of Directors, effective January 1, 2026, and that he will also serve on the Audit Committee. Johnson, a veteran ex...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Driven Brands Sells IMO to Focus on Core Operations
Positive
Dec 2, 2025
Driven Brands Holdings Inc. announced on December 2, 2025, that it has entered into a definitive agreement to sell its international car wash business, IMO, to Franchise Equity Partners for €406 million. This divestiture is part of Driven Br...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.