Driven Brands Holdings Inc. (DRVN) AI Stock Analysis

Driven Brands Holdings Inc. provides automotive services for retail and commercial customers in the United States, Canada, and internationally. Its operations encompass paint, collision repair, glass replacement, vehicle maintenance, car wash, oil change, and general vehicle repair. The company also distributes automotive parts, such as radiators, air conditioning components, exhaust products, windshields, oil filters, and wiper blades, through an extensive distribution network. Additionally, it offers technical training for repair facilities. Driven Brands delivers its offerings across various branded networks, including Take 5 Oil Change, IMO Car Wash Group, CARSTAR, ABRA Auto Body Repair of America, Fix Auto, Maaco, Meineke Car Care Centers, Uniban, and 1-800-Radiator & A/C.

Driven Brands achieved a 5-year revenue compound annual growth rate of 15.5% from FY2020 to FY2025. Annual revenue grew 6.3% in FY2025 to $1.86B, following $1.75B in FY2024 and $1.71B in FY2023. Gross margin reached 50.8% and operating margin was 13.9% in FY2025. After net losses of -$798.9M in FY2023 and -$297.5M in FY2024, net income rebounded to $140.2M in FY2025, delivering EPS of $1.31. Over the trailing twelve months, revenue was $1.93B with an operating margin of 16.8%. In the latest quarter ending June 30, 2026, quarterly revenue increased 6.8% year-over-year, while quarterly earnings declined 37.0%.

As of June 30, 2026, Driven Brands held $184.0M in cash and short-term investments alongside total debt of $2.22B, resulting in net debt of $2.04B. Total assets stood at $3.54B against shareholders' equity of $833.3M, reflecting a debt-to-equity ratio of 2.66 and a current ratio of 1.47. In FY2025, operating cash flow reached $330.5M, while capital expenditures were $222.8M, supporting positive free cash flow of $107.8M. The company's share count increased 1.4% over five years.

Driven Brands trades at a trailing P/E of 12.0x and a forward P/E of 8.6x, both below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value of $4.07B represents an EV to EBITDA multiple of 10.5x, compared to the peer median of 11.1x. The company's price-to-sales multiple of 1.0x compares to the peer median of 0.7x. Over the past year, the stock fell 25.5%, lagging the S&P 500 benchmark return of 16.8%, while its 5-year return of -59.3% trailed the S&P 500 gain of 83.0%.

Wall Street coverage comprises 5 Strong Buy, 1 Buy, 6 Hold, and 1 Sell ratings. The mean price target of $16.09 represents an upside of 35.0% over the last close of $11.92. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.01B and EPS of $1.20. For the following fiscal year, 12 analysts anticipate revenue of $2.19B and EPS of $1.44, representing 19.5% earnings growth. Driven Brands beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for November 3, 2026.

This page is an AI-written research summary of Driven Brands Holdings Inc. (DRVN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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