📊 DRVN Key Takeaways
Is Driven Brands Holdings Inc. (DRVN) a Good Investment?
Driven Brands faces structural headwinds with zero revenue growth, declining net income, and dangerously tight interest coverage (1.5x) that severely limits financial flexibility. The 2.08x debt-to-equity ratio compounds risk, while minimal ROE (6.9%) and ROA (1.6%) indicate poor capital efficiency in an automotive services business requiring operational leverage.
Driven Brands shows a fundamentally mixed profile: it remains profitable, generates positive operating cash flow, and converted that into positive free cash flow despite meaningful capital spending. However, flat revenue, a slight decline in net income, below-1.0x liquidity, and elevated leverage limit balance-sheet flexibility and reduce the quality of the earnings improvement.
Driven Brands Holdings Inc. Key Strengths (DRVN)
- Positive operating cash flow ($57.2M) and free cash flow ($23.1M) generation despite earnings pressure
- Acceptable operating margins (13.9%) and net margins (11.3%) demonstrate core business profitability
- Manageable liquidity ratios (Current 1.38x, Quick 1.25x) support near-term obligations
- Positive profitability with 10.1% operating margin and 5.6% net margin
- Solid cash generation with $234.75M operating cash flow and positive free cash flow
- EPS growth materially outpaced net income decline, indicating improved per-share earnings performance
DRVN Stock Risks: Driven Brands Holdings Inc. Investment Risks
- Stagnant revenue growth (0.0% YoY) with no indication of market share gains or expansion in automotive services segment
- Critical interest coverage ratio of 1.5x leaves minimal buffer for earnings volatility or rate environment deterioration
- Elevated leverage (Debt/Equity 2.08x) with $1.7B long-term debt constrains strategic flexibility and refinancing options
- Declining net income (-6.5% YoY) despite flat revenue signals margin compression and operational headwinds
- Weak returns on equity (6.9%) and assets (1.6%) fail to justify capital structure and leverage risk
- Revenue was flat year over year, signaling limited top-line momentum
- Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt
- Liquidity is tight with a 0.90x current ratio, 0.80x quick ratio, and only moderate 3.7x interest coverage
Key Metrics to Watch
- Interest Coverage Ratio trend—any decline below 1.5x signals covenant risk
- Operating cash flow sustainability and free cash flow conversion
- Revenue growth acceleration and same-store sales trends by brand segment
- Debt reduction progress and refinancing risk at maturity
- Organic revenue growth and margin expansion
- Debt reduction, interest coverage, and free cash flow conversion
Driven Brands Holdings Inc. (DRVN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility.
DRVN Profit Margin, ROE & Profitability Analysis
DRVN vs Automotive Sector: How Driven Brands Holdings Inc. Compares
How Driven Brands Holdings Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Driven Brands Holdings Inc. Stock Overvalued? DRVN Valuation Analysis 2026
Based on fundamental analysis, Driven Brands Holdings Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Driven Brands Holdings Inc. Balance Sheet: DRVN Debt, Cash & Liquidity
DRVN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Driven Brands Holdings Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.94 indicates the company is currently unprofitable.
DRVN Revenue Growth, EPS Growth & YoY Performance
DRVN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $447.6M | N/A | $0.06 |
| Q3 2025 | $502.3M | N/A | $-0.09 |
| Q2 2025 | $518.8M | N/A | $0.18 |
| Q1 2025 | $482.0M | N/A | $0.02 |
| Q3 2024 | $581.0M | -$14.9M | $-0.09 |
| Q2 2024 | $606.9M | $30.2M | $0.18 |
| Q1 2024 | $562.5M | $4.3M | $0.03 |
| Q3 2023 | $516.6M | $15.8M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Driven Brands Holdings Inc. Dividends, Buybacks & Capital Allocation
DRVN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Driven Brands Holdings Inc. (CIK: 0001804745)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRVN
What is the AI rating for DRVN?
Driven Brands Holdings Inc. (DRVN) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRVN's key strengths?
Claude: Positive operating cash flow ($57.2M) and free cash flow ($23.1M) generation despite earnings pressure. Acceptable operating margins (13.9%) and net margins (11.3%) demonstrate core business profitability. ChatGPT: Positive profitability with 10.1% operating margin and 5.6% net margin. Solid cash generation with $234.75M operating cash flow and positive free cash flow.
What are the risks of investing in DRVN?
Claude: Stagnant revenue growth (0.0% YoY) with no indication of market share gains or expansion in automotive services segment. Critical interest coverage ratio of 1.5x leaves minimal buffer for earnings volatility or rate environment deterioration. ChatGPT: Revenue was flat year over year, signaling limited top-line momentum. Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt.
What is DRVN's revenue and growth?
Driven Brands Holdings Inc. reported revenue of $484.4M.
Does DRVN pay dividends?
Driven Brands Holdings Inc. does not currently pay dividends.
Where can I find DRVN SEC filings?
Official SEC filings for Driven Brands Holdings Inc. (CIK: 0001804745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRVN's EPS?
Driven Brands Holdings Inc. has a diluted EPS of $0.33.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DRVN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Driven Brands Holdings Inc. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DRVN stock overvalued or undervalued?
Valuation metrics for DRVN: ROE of 6.9% (sector avg: 12%), net margin of 11.3% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is DRVN's AI grade for 2026?
Our dual AI analysis gives Driven Brands Holdings Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DRVN's free cash flow?
Driven Brands Holdings Inc.'s operating cash flow is $57.2M, with capital expenditures of $34.1M. FCF margin is 4.8%.
How does DRVN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 11.3% (avg: 6%), ROE 6.9% (avg: 12%), current ratio 1.38 (avg: 1.2).
Is Driven Brands Holdings Inc. carrying too much debt?
DRVN has a debt-to-equity ratio of 2.08x, which is above the Automotive sector average of 1x. However, the current ratio of 1.38 suggests adequate short-term liquidity.