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Driven Brands Holdings (NasdaqGS:DRVN)

US26210V1026

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Driven Brands Holdings stock research in summary

drivenbrands.com

ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), Driven Brands Holdings (Diversified Support Services, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Driven Brands Holdings are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), show above-average growth (Growth Rank of 100) but are riskily financed (Safety Rank of 19), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on Driven Brands Holdings's financial characteristics. As the company Driven Brands Holdings's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 50) and above-average growth (Obermatt Growth Rank of 100), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 19) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	50
Growth Rank	100
Safety Rank	19
Combined Rank	60

Country	USA
Industry	Diversified Support Services
Index	NASDAQ
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: Driven Brands Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	13	63	50
GROWTH
GROWTH	n/a	71	1	100
SAFETY
SAFETY	n/a	11	37	19
SENTIMENT
SENTIMENT	n/a	54	18	^new
360° VIEW
360° VIEW	n/a	18	4	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 29-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Driven Brands Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	13	63	50
GROWTH
GROWTH	n/a	71	1	100
SAFETY
SAFETY	n/a	11	37	19
COMBINED
COMBINED	n/a	9	4	60

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Driven Brands Holdings the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), Driven Brands Holdings shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Driven Brands Holdings. Price-to-Sales (P/S) is 57, which means that the stock price compared with what market professionals expect for future sales is lower than for 57% of comparable companies, indicating a good value regarding Driven Brands Holdings's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 83% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 64. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Driven Brands Holdings (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a buy recommendation based on Driven Brands Holdings's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	27	68	57
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	18	89	83
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	50	72	64
DIVIDEND YIELD
DIVIDEND YIELD	n/a	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	13	63	50

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Driven Brands Holdings; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2024, Driven Brands Holdings shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Driven Brands Holdings. Sales Growth has a rank of 80 which means that currently, professionals expect the company to grow more than 80% of its competitors. Capital Growth is also above 42% of competitors with a rank of 93, and Stock Returns with the rank of 69 is also an outperformance. Only Profit Growth is low with a rank of 42 which means that currently, professionals expect the company to grow its profits less than 58% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Driven Brands Holdings is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	80	80	80
PROFIT GROWTH
PROFIT GROWTH	n/a	91	15	42
CAPITAL GROWTH
CAPITAL GROWTH	n/a	5	1	93
STOCK RETURNS
STOCK RETURNS	n/a	61	1	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	71	1	100

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Driven Brands Holdings.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 19 (better than 19% compared with alternatives), the company Driven Brands Holdings has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Driven Brands Holdings is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Driven Brands Holdings and the other two below average. Refinancing is at 73, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. But Leverage is high with a rank of 11, meaning the company has an above-average debt-to-equity ratio. It has more debt than 89% of its competitors. Liquidity is also on the riskier side with a rank of 29, meaning the company generates less profit to service its debt than 71% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 19 (worse than 81% compared with alternatives), Driven Brands Holdings has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Driven Brands Holdings are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Driven Brands Holdings and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	16	22	11
REFINANCING
REFINANCING	n/a	23	75	73
LIQUIDITY
LIQUIDITY	n/a	33	40	29
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	11	37	19

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Driven Brands Holdings and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	77	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	39	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	10	12	^new
MARKET PULSE
MARKET PULSE	n/a	76	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	54	18	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Driven Brands Holdings.
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