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Driven Brands Holdings Inc. (DRVN) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Driven Brands Holdings Inc.

DRVNMarket cap $1.94BPrice $11.8

Country🇺🇸United States

SectorConsumer

IndustryConsumer Services

Runs the largest automotive services network in North America, spanning Take 5 Oil Change, Meineke, and Maaco under one roof. Nearly 5,000 locations turn car maintenance into a recurring, recession-resistant cash machine most drivers can't avoid.

In Bastion Portfolios?

52W Return-26%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-3%2

Revenue Forecast

Rev CAGR (1y)+7%5

Rev CAGR (3y)+7%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+40%9

EPS Growth Y+2+21%8

EPS Growth Y+3+11%7

Quality

Margins

EBIT Margin17%6

Net Income Margin9%5

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA4.22

Efficiency

ROE21%8

ROA4%6

Earnings Stability66

GEAR+AVERAGE53

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)99

P/E Ratio (Forward 3y)79

P/BV2.36

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd118

Yield

Free Cash Flow Yield6.9%8

Dividend Yieldna–

Momentum

Short term

1 month return-6%4

3 month return-23%1

YTD return-21%2

Mid term

Price vs 52wHigh68%3

1 year return-18%3

Long term

3 year return+1%3

5 year return-59%1

Risk Shield

Price Risk

Beta0.76

Volatility56%2

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield6.9%8

Quality

ROCE9%5

Earnings Stability66

Net Debt/EBITDA4.22

02Growth

Is it actually growing, and how fast?

DRVNDriven Brands Holdings

Revenue FY25$1.9B

GROWTH RATING↗

AVERAGE54 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-3%2

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+7%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+40%9

EPS growth, FY27E+21%8

EPS growth, FY28E+11%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 7%/yr from here.

Earnings are set to grow faster than sales (EPS about 21%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 54% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

Revenue fell 3%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-23%1

YTD return-21%2

MID & LONG-TERM▾SCORE

% of 52-week high68%3

1-year return-18%3

3-year return+1%3

5-year return-59%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+0.9% over three years and -59% over five), behind 80% of the market.

It's down 18% over the past year, now 32% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-23%) and so far this year (-21%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Driven Brands Holdings Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

DRVNDriven Brands Holdings

Revenue FY25$1.9B

GROWTH RATING↗

AVERAGE54 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-3%2

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+7%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+40%9

EPS growth, FY27E+21%8

EPS growth, FY28E+11%7

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 7%/yr from here.

Earnings are set to grow faster than sales (EPS about 21%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 54% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

Revenue fell 3%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-23%1

YTD return-21%2

MID & LONG-TERM▾SCORE

% of 52-week high68%3

1-year return-18%3

3-year return+1%3

5-year return-59%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+0.9% over three years and -59% over five), behind 80% of the market.

It's down 18% over the past year, now 32% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-23%) and so far this year (-21%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Driven Brands Holdings Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community