Driven Brands Holdings (DRVN) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: N/A
• Average Volume (3M): 856.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -6.96%
• EPS Growth: -3223.14%
• Country: US
• Employees: 10,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: 164,454,220
• 10 Day Avg. Volume: 1,077,421
• 30 Day Avg. Volume: 856,097
• 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: 2.40
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 289.99
• 1Y Price Target: $19.44
• Price Target Upside: 76.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $16.50 ▲(50.00% Upside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 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.

Portfolio simplification and proceeds

Disposing of the international car wash business for substantial cash is a structural move to refocus on core North American franchise growth and deleveraging. Proceeds primarily earmarked for debt reduction improve balance sheet flexibility and reallocate capital to higher‑return units.

Board and financial oversight upgrade

Adding an experienced independent director with CFO and retail background strengthens governance and financial oversight. Better board expertise can improve capital allocation, execution of deleveraging plans and disciplined franchising strategy over multiple quarters.

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.

Negative profitability and declining revenue

Negative TTM revenue growth and losses signal structural challenges in restoring profitable scale across some segments. Persistent margin pressure reduces retained earnings and slows deleveraging, constraining the company’s ability to self‑fund strategic expansion.

Weak cash conversion

Low conversion of net income into operating cash (0.42x) and modest FCF growth mean earnings aren't reliably translating into free cash. That impairs the firm’s ability to service debt, invest in unit growth, or return capital, raising long‑term funding risk.

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 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 services. Additionally, the company earns royalties and franchise fees from its franchisees, which contribute significantly to its overall revenue. Partnerships with automotive parts suppliers and other service providers also enhance its revenue model, allowing for discounts and promotions that attract more customers. The company's growth strategy includes expanding its brand portfolio and increasing its market presence through new franchise openings and acquisitions, further driving its earnings.

Driven Brands Holdings Financial Statement Overview

Summary

Weak fundamentals: TTM revenue growth is negative (-2.52%) with negative net profit and EBIT margins. Balance sheet leverage is high (debt-to-equity 3.47) with negative ROE and a low equity ratio, while cash flow shows only modest improvement (FCF growth 3.92%) and weak cash conversion (operating cash flow to net income 0.42).

Income Statement

Driven Brands Holdings has experienced a decline in revenue growth, with a negative growth rate of -2.52% in the TTM period. The company has struggled with profitability, as indicated by negative net profit and EBIT margins. Gross profit margin remains moderate at 46.37%, but the overall income statement reflects challenges in maintaining revenue and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.47, indicating significant leverage, which poses a financial risk. Return on equity is negative, reflecting losses and inefficiencies in generating returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 3.92% in the TTM period, indicating some improvement. However, the operating cash flow to net income ratio is low at 0.42, and the free cash flow to net income ratio is also low, suggesting challenges in converting income into cash flow.

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

• Technical Analysis Sentiment: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 11 is below the 20-day moving average (MA) of 15.88, below the 50-day MA of 15.54, and below the 200-day MA of 16.30, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 18.33 is Positive, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, 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
PAG	63 Neutral	$10.37B	11.15	16.56%	3.14%	2.25%	8.92%
LAD	62 Neutral	$6.54B	8.66	12.36%	0.64%	8.56%	17.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KMX	60 Neutral	$6.12B	14.28	7.46%	―	0.12%	2.78%
AN	58 Neutral	$6.77B	11.44	27.05%	―	6.06%	-1.71%
DRVN	56 Neutral	$1.81B	-8.82	-24.67%	―	-6.96%	-3223.14%
SAH	56 Neutral	$2.11B	18.33	12.51%	2.27%	9.09%	-33.59%

Driven Brands Holdings Corporate Events

Driven Brands Completes IMO Sale to Refocus Portfolio

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 described the divestiture as a strategic move to sharpen the company’s focus on scaling its Take 5 business and enhancing cash generation from its franchise brands, while simplifying the portfolio and strengthening the balance sheet, with cash proceeds primarily earmarked for debt reduction. Following the transaction, Driven Brands plans to report its Car Wash segment as discontinued operations beginning in the fourth quarter of 2025, elevate Auto Glass Now to a stand-alone reporting segment in the same period, and provide investors with recast unaudited quarterly financials for the first three quarters of fiscal 2025 to reflect the updated segment structure.

The most recent analyst rating on (DRVN) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.

Driven Brands Appoints Timothy Johnson to Board, Audit Committee

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 executive with more than three decades of experience in global retail and consumer companies and former CFO and Chief Administrative Officer of Victoria’s Secret and Big Lots, is expected to strengthen Driven Brands’ financial oversight and strategic execution as it pursues growth and cash generation initiatives, potentially enhancing governance and bolstering confidence among investors and other stakeholders.

The most recent analyst rating on (DRVN) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.

Driven Brands Sells IMO to Focus on Core Operations

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 Brands’ strategy to focus on its core North American operations, particularly scaling Take 5 and enhancing cash generation through its Franchise Brands. The transaction, expected to close in the first quarter of 2026, aims to reduce the company’s net leverage ratio and strengthen its balance sheet, with proceeds primarily used to pay down debt. The company has updated its financial outlook for fiscal year 2025 to reflect the reclassification of the international car wash business as discontinued operations, anticipating adjusted diluted EPS from continuing operations to range from $1.18 to $1.23.

The most recent analyst rating on (DRVN) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.