Driven Brands Holdings, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Life Time Group Holdings, Inc.

Graham Holdings Co.

UniFirst Corp.

Service Corp. International

Driven Brands Holdings, Inc.

Global Business Travel Group, Inc.

TripAdvisor, Inc.

Planet Fitness, Inc.

Marriott Vacations Worldwide Corp.

H&R Block, Inc.

Valvoline, Inc.

Why is Driven Brands Holdings, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 22.10% and Operating profit at 10.18%

With a growth in Net Profit of 418.07%, the company declared Very Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at USD 267.69 MM
INTEREST COVERAGE RATIO(Q) Highest at 434.71
DEBT-EQUITY RATIO (HY) Lowest at 318.78 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.11%, its profits have risen by 85.7% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 52.27%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -38.11% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Driven Brands Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Driven Brands Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Driven Brands Holdings, Inc.

-32.93%

-0.05

46.05%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.10%

EBIT Growth (5y)

10.18%

EBIT to Interest (avg)

2.20

Debt to EBITDA (avg)

5.05

Net Debt to Equity (avg)

3.79

Sales to Capital Employed (avg)

0.63

Tax Ratio

8.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

52.27%

ROCE (avg)

7.33%

ROE (avg)

12.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.16

EV to EBIT

20.97

EV to EBITDA

10.63

EV to Capital Employed

1.33

EV to Sales

1.71

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

6.35%

ROE (Latest)

15.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 267.69 MM

INTEREST COVERAGE RATIO(Q)

Highest at 434.71

DEBT-EQUITY RATIO (HY)

Lowest at 318.78 %

OPERATING PROFIT MARGIN(Q)

Highest at 19.15 %

PRE-TAX PROFIT(Q)

Highest at USD 43.54 MM

NET PROFIT(Q)

Highest at USD 65.04 MM

EPS(Q)

Highest at USD 0.37

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.98 times

Here's what is working for Driven Brands Holdings, Inc.

Pre-Tax Profit

At USD 43.54 MM has Grown at 585.83%

over average net sales of the previous four periods of USD 6.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 65.04 MM has Grown at 296.09%

over average net sales of the previous four periods of USD 16.42 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 434.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 267.69 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 19.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 43.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 65.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 318.78 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Driven Brands Holdings, Inc.

Debtors Turnover Ratio

Lowest at 10.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio