Driven Brands Holdings (DRVN) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 1,497,815
• 30 Day Avg. Volume: 1,236,047
• 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: 2.27
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 582.46
• 1Y Price Target: $21.11
• Price Target Upside: 51.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.24
• Revenue Forecast (FY): $2.11B

• Rating: 47 Neutral
• Price Target: $14.00 ▲(0.72% Upside)

Driven Brands Holdings faces significant challenges with declining revenue growth, high leverage, and a bearish technical outlook. However, improvements in cash flow and strong performance in specific segments, particularly Take 5 Oil Change, provide some positive aspects. The earnings call offered optimistic guidance, but macroeconomic uncertainties and segment-specific challenges remain concerns.

Positive Factors

Cash Flow Improvement

Significant improvement in free cash flow indicates enhanced cash generation ability, providing financial flexibility for reinvestment and debt reduction.

Take 5 Oil Change Performance

Consistent growth in the Take 5 segment underscores strong market demand and operational success, contributing positively to overall company performance.

Leadership Appointments

Strategic leadership appointments reflect strong internal talent development, potentially enhancing operational efficiency and strategic execution.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth and weather economic downturns.

Declining Revenue Growth

Decreasing revenue growth indicates challenges in maintaining market share and could pressure profitability if not addressed through strategic initiatives.

Franchise Segment Challenges

Challenges in the franchise segment, including revenue decline, suggest potential difficulties in sustaining franchisee satisfaction and network expansion.

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	2.17B	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: Negative
• Last Price: 13.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 13.9 is below the 20-day moving average (MA) of 14.66, below the 50-day MA of 15.65, and below the 200-day MA of 16.75, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.52 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
LAD	69 Neutral	$7.13B	8.50	13.44%	0.74%	8.56%	17.84%
PAG	68 Neutral	$10.48B	11.20	17.30%	3.26%	2.25%	8.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAH	61 Neutral	$2.18B	17.26	12.51%	1.84%	9.09%	-33.59%
KMX	58 Neutral	$5.06B	9.43	8.42%	―	2.17%	28.59%
AN	55 Neutral	$7.17B	11.57	27.16%	―	6.06%	-1.71%
DRVN	47 Neutral	$2.29B	―	-24.67%	―	-6.96%	-3223.14%

Driven Brands Holdings Corporate Events

Driven Brands Q3 Earnings: Growth Amid Challenges

Driven Brands Holdings, Inc. recently held its earnings call, revealing a strong financial performance for the third quarter. The company reported significant revenue growth, particularly in its Take 5 Oil Change segment. However, there are concerns about macroeconomic uncertainties and challenges in specific segments, such as franchise and collision industries, which could pose potential headwinds as the company moves into the fourth quarter.

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.

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.

Driven Brands Reports Steady Q2 2025 Performance

Driven Brands Holdings Inc., headquartered in Charlotte, NC, is the largest automotive services company in North America, offering a wide range of consumer and commercial automotive services including paint, collision, glass, vehicle repair, oil change, maintenance, and car wash services. The company operates approximately 4,800 locations across the United States and 13 other countries, servicing tens of millions of vehicles annually.

Driven Brands Earnings Call: Growth Amid Challenges

Driven Brands Holdings, Inc. recently held its earnings call, revealing a mixed sentiment among its business segments. The company showcased robust growth in its Take 5 Oil Change and international car wash operations, yet faced challenges within its collision and Maaco businesses. Despite these hurdles, Driven Brands is making strides in debt reduction and maintaining a solid financial footing.