Driven Brands Holdings (DRVN) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 669.69K
• Price to Earnings (P/E): 552.6
• Beta (1Y): 1.10
• Revenue Growth: -1.31%
• EPS Growth: 61.65%
• Country: US
• Employees: 10,700
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Dealerships
• EPS (TTM): 0.27
• Shares Outstanding: 164,275,360
• 10 Day Avg. Volume: 652,556
• 30 Day Avg. Volume: 669,686
• PEG Ratio: -9.03
• Price to Book (P/B): 4.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.74K
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: -63.13
• 1Y Price Target: $21.36
• Price Target Upside: 23.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 52 Neutral
• Price Target: $17.50 ▲(0.86%Upside)

Driven Brands Holdings has a moderate overall stock score. The most significant factors are financial performance challenges, particularly with profitability and cash flow, offset partially by successful debt reduction and revenue growth in key segments. Technical analysis shows neutral momentum, while valuation is a concern due to negative earnings. Recent corporate strategies are positive but do not outweigh financial risks.

Positive Factors

Financial Management

DRVN is on pace to deliver over $100M in free cash flow, demonstrating strong financial management.

Financial Performance

Driven Brands Holdings, Inc. reported better-than-expected results with strong 8% comp sales growth in its Take 5 business.

Growth Potential

Take 5 is the fastest-growing of the top three quick lube operators and, by virtue of still having fewer stores than either of its two main peers, it has years of growth ahead of it.

Negative Factors

Consumer Weakness

The -2.9% Q1'25 comp within Franchise Brands indicates DRVN is not immune to macro and consumer weakness.

Leverage Risk

Leverage remains a risk, with DRVN's ~4.3x leverage ratio considered high, creating EPS risk if EBITDA growth slows.

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 makes money primarily through its network of franchised and company-operated service centers. The revenue model revolves around offering a broad range of automotive services, such as repair, maintenance, and paint and collision services. Franchise fees and royalties from its franchisees constitute a significant portion of its income, alongside direct revenues from company-operated stores. The company also benefits from strategic partnerships with automotive suppliers, which help reduce costs and improve service efficiency. Additionally, Driven Brands leverages its extensive brand portfolio and market presence to attract a diverse customer base, enhancing its overall revenue potential.

Driven Brands Holdings Financial Statement Overview

Summary

Driven Brands Holdings shows strong revenue growth but struggles with profitability and cash flow, with high leverage posing a financial risk.

Income Statement

Driven Brands Holdings has shown significant revenue growth over the years, indicating expansion. However, profitability metrics such as net profit margin and EBIT margin are negative, reflecting operational challenges and potential inefficiencies. The negative EBITDA margin further highlights the struggles in generating operating profit.

Balance Sheet

The company has a high debt-to-equity ratio, indicating a significant reliance on debt financing, which poses a risk in terms of financial stability. The equity ratio is low, suggesting limited equity cushion. However, the return on equity has been volatile, with recent years showing negative returns due to net losses.

Cash Flow

Driven Brands Holdings has experienced variable free cash flow, with recent periods showing negative free cash flow, indicating cash management challenges. The operating cash flow to net income ratio suggests that cash generation from operations is better than net income results, but the free cash flow to net income ratio is concerning due to persistent negative values.

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

Driven Brands Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRVN, the sentiment is Neutral. The current price of 17.35 is below the 20-day moving average (MA) of 17.52, below the 50-day MA of 17.69, and above the 200-day MA of 16.44, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DRVN.

Driven Brands Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAD	82 Outperform	$8.67B	10.50	12.95%	0.66%	12.96%	-6.25%
ABG	78 Outperform	$4.88B	11.81	11.92%	―	11.11%	-23.41%
PAG	77 Outperform	$11.70B	12.46	18.57%	2.87%	3.29%	-1.29%
SAH	76 Outperform	$2.88B	12.10	24.52%	1.64%	1.59%	43.91%
AN	71 Outperform	$7.74B	12.09	28.45%	―	-0.24%	-19.76%
Sector *	62 Neutral	$16.79B	10.79	-7.01%	3.04%	1.73%	-25.15%
DRVN	52 Neutral	$2.83B	552.59	-35.39%	―	-1.31%	61.65%

Driven Brands Holdings Corporate Events

Driven Brands Holds Annual Stockholders Meeting

On May 20, 2025, Driven Brands Holdings Inc. conducted its annual meeting of stockholders, where several key decisions were made. Stockholders elected Catherine Halligan, Rick Puckett, and Michael Thompson as Class II directors, approved executive compensation for 2024 on an advisory basis, and ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm for the fiscal year ending December 27, 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder confidence.

The most recent analyst rating on (DRVN) stock is a Buy 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.

Driven Brands Appoints New Chief Accounting Officer

Driven Brands Holdings Inc. announced the appointment of Rebecca Fondell as the new Senior Vice President and Chief Accounting Officer, effective May 9, 2025. Fondell, who brings extensive experience from her previous roles at Papa John’s International and Reliance Worldwide Corporation, will receive a comprehensive compensation package including a base salary, performance-based bonuses, and equity grants. This strategic appointment is expected to strengthen the company’s financial leadership and support its growth objectives.