Driven Brands Holdings (DRVN) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 797.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -6.96%
• EPS Growth: -3223.14%
• Country: US
• Employees: 10,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.34
• Shares Outstanding: 164,454,220
• 10 Day Avg. Volume: 786,087
• 30 Day Avg. Volume: 797,531
• 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: 2.02
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 582.46
• 1Y Price Target: $20.70
• Price Target Upside: 33.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.42
• Revenue Forecast (FY): $2.15B

• Rating: 52 Neutral
• Price Target: $15.00 ▼(-3.35% Downside)

The score is primarily held back by weak financial performance (profitability pressure and high leverage) and a negative P/E tied to losses. Offsetting positives include a solid earnings-call outlook with strong Take 5 execution and expansion, plus corporate actions aimed at improving focus and reducing debt; technical signals remain mostly neutral.

Positive Factors

Revenue Growth

The 7% revenue growth and strong adjusted EBITDA indicate a robust business model and effective execution, supporting long-term growth.

Strategic Divestiture

The sale of IMO allows Driven Brands to focus on core operations, improve cash generation, and reduce leverage, enhancing financial stability.

Leadership Strengthening

Adding Timothy Johnson to the Board enhances governance and financial oversight, which can improve strategic execution and investor confidence.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Profitability Pressure

Ongoing profitability issues indicate challenges in cost management and pricing power, impacting long-term financial health.

Franchise Segment Challenges

Declining franchise revenue suggests competitive pressures and operational challenges, potentially hindering growth in this key segment.

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

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	2.17B	2.34B	2.30B	2.03B	1.47B	904.20M
Gross Profit	1.07B	1.23B	1.03B	967.51M	725.01M	557.24M
EBITDA	8.91M	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: Positive
• Last Price: 15.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.52 is above the 20-day moving average (MA) of 15.14, above the 50-day MA of 14.73, and below the 200-day MA of 16.42, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 80.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRVN.

Driven Brands Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAD	76 Outperform	$8.06B	9.62	13.44%	0.64%	8.56%	17.84%
PAG	71 Outperform	$10.83B	11.58	17.30%	3.14%	2.25%	8.92%
AN	70 Neutral	$7.72B	12.64	27.16%	―	6.06%	-1.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KMX	61 Neutral	$6.88B	16.15	7.46%	―	0.12%	2.78%
SAH	61 Neutral	$2.20B	17.39	12.51%	2.27%	9.09%	-33.59%
DRVN	52 Neutral	$2.57B	―	-24.67%	―	-6.96%	-3223.14%

Driven Brands Holdings Corporate Events

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.

Driven Brands Holdings Closes $500M Senior Secured Notes

On October 20, 2025, Driven Brands Holdings Inc. announced the closure of a $500 million offering of Series 2025-1 Fixed Rate Senior Secured Notes, Class A-2, with an anticipated repayment date in October 2030 and a final maturity in October 2055. This issuance, part of a whole business securitization, aims to refinance existing debt, pay transaction-related fees, and support general corporate purposes, reflecting Driven Brands’ strategic financial management and positioning within the automotive services industry.

The most recent analyst rating on (DRVN) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.