Driven Brands Holdings (DRVN) AI Stock Analysis

• Market Cap: $2.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 552.6
• Beta (1Y): 0.80
• Revenue Growth: -4.12%
• EPS Growth: 64.24%
• Country: US
• Employees: 10,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.36
• Shares Outstanding: 164,279,950
• 10 Day Avg. Volume: 1,077,235
• 30 Day Avg. Volume: 1,098,477
• PEG Ratio: 0.15
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -55.26
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: -422.97
• 1Y Price Target: $21.75
• Price Target Upside: 38.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 51 Neutral
• Price Target: $17.50 ▲(11.11% Upside)

Driven Brands Holdings' overall stock score reflects a mixed financial performance with significant leverage risks, offset by strong cash flow improvements. The earnings call provided positive insights into growth segments and deleveraging efforts, but valuation concerns and technical indicators suggest caution. The company's strategic initiatives and operational efficiencies are key strengths, while high debt levels and industry challenges pose risks.

Positive Factors

Revenue Growth

The 6% revenue growth and 3% system-wide sales increase indicate strong demand and successful expansion efforts, supporting long-term growth.

Take 5 Oil Change Expansion

The expansion of Take 5 Oil Change with consistent same-store sales growth highlights a robust business model and market demand.

Deleveraging Progress

Reducing leverage enhances financial stability and flexibility, allowing for strategic investments and reducing risk.

Negative Factors

High Debt Levels

High leverage can strain financial resources, limiting the company's ability to invest in growth and weather economic downturns.

Franchise Brands Segment Challenges

Declines in the Franchise Brands segment indicate potential structural challenges that could impact future profitability and growth.

Collision Industry Pressure

Industry pressures in the collision segment could lead to sustained revenue challenges, affecting overall business performance.

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, vehicle repair, car wash, oil change, and maintenance services. It also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as provides training services to repair and maintenance, and paint and collision shops. The company sells its products and services under the Take 5 Oil Change, IMO, CARSTAR, ABRA, Fix Auto, Maaco, Meineke, Uniban, 1-800-Radiator & A/C, PH Vitres D'Autos, Spire Supply, and Automotive Training Institute names. As of December 25, 2021, it operated 4,412 company-operated, franchised, and independently-operated stores. Driven Brands Holdings Inc. was founded in 1972 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Driven Brands generates revenue primarily through a franchise model, where it earns royalties and fees from its network of franchisees operating its various service brands. Key revenue streams include franchise royalties, service fees, and sales of proprietary products. The company also benefits from direct sales at company-operated locations. Additionally, partnerships with automotive manufacturers and suppliers enhance its service offerings and contribute to earnings through co-branding and promotional activities. The growing demand for vehicle maintenance and repair services, as well as the expansion of its franchise network, further supports its revenue growth.

Driven Brands Holdings Financial Statement Overview

Summary

Driven Brands Holdings faces challenges with declining revenue growth and profitability, as well as high leverage. Despite these issues, the company has shown improvement in cash flow generation. The financial position indicates potential risks due to high debt levels, but operational efficiencies and cash flow improvements provide some positive outlook.

Income Statement

Driven Brands Holdings has experienced declining revenue growth in the TTM period, with a negative revenue growth rate of -2.65%. The company also faces challenges with profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.90 in the TTM period, indicating significant leverage. Return on equity is negative, reflecting losses. The equity ratio is not provided, but the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 3698.57% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting limited cash flow relative to earnings. The free cash flow to net income ratio is positive, showing some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.22B	2.34B	2.30B	2.03B	1.47B	904.20M
Gross Profit	1.33B	1.23B	1.19B	879.52M	650.25M	401.87M
EBITDA	-13.09M	27.71M	-504.16M	493.17M	355.49M	180.67M
Net Income	-311.21M	-292.50M	-744.96M	43.19M	9.63M	-4.22M
Balance Sheet
Total Assets	4.28B	5.26B	5.91B	6.50B	5.85B	4.66B
Cash, Cash Equivalents and Short-Term Investments	166.13M	169.95M	176.52M	227.11M	523.41M	172.61M
Total Debt	2.90B	4.00B	4.35B	3.92B	3.31B	2.94B
Total Liabilities	3.54B	4.65B	5.00B	4.85B	4.21B	3.55B
Stockholders Equity	743.39M	607.33M	906.08M	1.65B	1.64B	1.10B
Cash Flow
Free Cash Flow	39.77M	-47.06M	-361.31M	-242.41M	123.07M	31.53M
Operating Cash Flow	257.31M	241.45M	235.17M	197.18M	283.83M	83.99M
Investing Cash Flow	283.81M	59.02M	-451.41M	-840.28M	-814.94M	-57.32M
Financing Cash Flow	-523.43M	-302.84M	170.70M	343.37M	885.54M	118.64M

Driven Brands Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRVN, the sentiment is Negative. The current price of 15.75 is below the 20-day moving average (MA) of 17.11, below the 50-day MA of 17.31, and below the 200-day MA of 16.93, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 27.60 is Positive, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRVN.

Driven Brands Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAD	71 Outperform	$8.23B	9.59	12.75%	0.67%	10.25%	9.08%
AN	70 Outperform	$8.43B	14.03	25.67%	―	3.15%	-12.49%
PAG	68 Neutral	$11.55B	12.30	17.04%	2.85%	2.39%	5.84%
SAH	66 Neutral	$2.65B	17.24	20.33%	1.87%	4.48%	-16.26%
KMX	56 Neutral	$6.76B	13.53	8.40%	―	2.17%	28.59%
DRVN	51 Neutral	$2.59B	552.59	-34.63%	―	-4.12%	64.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Driven Brands Holdings Corporate Events

Driven Brands Appoints New COO Mo Khalid

Driven Brands Holdings Inc. announced the appointment of Mo Khalid as Executive Vice President and Chief Operating Officer, effective August 25, 2025. Khalid, who has been instrumental in growing the Take 5 business to over 1,200 locations and achieving system-wide sales exceeding $1.5 billion, will now focus on enhancing operational rigor across all Driven Brands. Tim Austin will succeed Khalid as President of Take 5, following his role as Chief Operating Officer after the sale of the U.S. Car Wash business in April 2025.

The most recent analyst rating on (DRVN) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.