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DRVNDriven Brands Holdings Inc.Sell5.7·$14.35-4.14%
SellModerate Confidence
Investment thesis

Attractive valuation multiples — including a forward price-to-earnings ratio of 9 times and a PEG ratio below 1 — and a strong three-quarter earnings beat streak sit alongside a confirmed technical downtrend and material leverage, leaving the stock in an unresolved tension between fundamental value and price momentum that a thin risk/reward ratio captures precisely.

Thesis pillars

  • Strong Earnings Beat PatternImproving
  • Cheap Valuation Best In Class MarginsStable
  • Confirmed Downtrend Death CrossImproving
  • +2 more pillars — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Driven Brands Holdings Inc. (DRVN) Stock Analysis

SellVALUE-TRAP 1/5GrowthModerate Confidence

Consumer Cyclical · Auto & Truck Dealerships

Sell if holding. At $14.35, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 3.1%.

Driven Brands, the largest automotive services company in North America by location count, operates 4,200+ locations in 49 U.S. states and Canada under brands including Take 5 Oil Change, Meineke, Maaco, CARSTAR, and AutoGlassNow. The company generated approximately $1.9 billion... Read more

$14.35+3.1% A.UpsideScore 5.7/10#7 of 18 Auto & Truck Dealerships
QualityF-score7 / 9FCF yield4.67%
Stop $13.35Target $14.80(analyst − 13%)A.R:R 0.4:1
Analyst target$17.01+18.5%10 analysts
$14.80our TP
$14.35price
$17.01mean
$13
$22

Sell if holding. At $14.35, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 3.1%. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.7/10, moderate confidence.

Passes 6/10 gates (positive momentum, clean insider activity, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-30
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 2026· next earnings call

Thesis

Rewards
Attractive valuation
Risks
Thin upside margin: 3.1%
Leverage penalty (D/E 2.8): -1.5

Key Metrics

P/E (TTM)17.4
P/E (Fwd)10.1
Mkt Cap$2.5B
EV/EBITDA12.8
Profit Mgn9.7%
ROE19.8%
Rev Growth8.2%
Beta0.96
DividendNone
Rating analysts17

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C0.18bullish
IV97%elevated
Max Pain$18+22.0% vs spot

Material Events(8-K, last 90d)

  • 2026-04-21Item 2.02LOW
    Driven Brands released a press release on April 21, 2026 disclosing expected performance for Q4 2025, FY2025, and Q1 2026, and provided an update on the filing status of the FY2025 Form 10-K and its anticipated impact on the Q1 2026 Form 10-Q.
    SEC filing →
  • 2026-04-21Item 3.01MEDIUM
    Driven Brands received a Nasdaq non-compliance notice on April 15, 2026 for failing to timely file its FY2025 Form 10-K (12b-25 late notice filed Feb 26, 2026). Notice has no immediate effect on listing or trading. Company intends to regain compliance.
    SEC filing →
  • 2026-06-05Item 3.01MEDIUM
    Driven Brands received a second Nasdaq non-compliance notice on June 1, 2026 for failing to timely file its Q1 2026 Form 10-Q. Company has until July 31, 2026 to submit a compliance plan; Nasdaq may grant until November 25, 2026. No immediate effect on listing.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesA.R:R 0.4 < 1.5@spotMomentum 5.0<5.5 (soft — BUY_NOW allowed but watch)Death cross (50MA < 200MA)8K FLAG 3.01,3.01Momentum 5.0>=4.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
39 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $13.55Resistance $15.89

Price Targets

$13
$15
A.Upside+3.1%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! asymmetry at 0.4 (below the engine's 1.5 threshold)@spot

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-30 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DRVN stock a buy right now?

Sell if holding. At $14.35, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.8): -1.5; Thin upside margin: 3.1%. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $13.35. Score 5.7/10, moderate confidence.

What is the DRVN stock price target?

Take-profit target: $14.80 (+3.1% upside). Prior stop was $13.35. Stop-loss: $13.35.

What are the risks of investing in DRVN?

Thin upside margin: 3.1%; Leverage penalty (D/E 2.8): -1.5.

Is DRVN overvalued or undervalued?

Driven Brands Holdings Inc. trades at a P/E of 17.4 (forward 10.1). TrendMatrix value score: 7.1/10. Verdict: Sell.

What do analysts say about DRVN?

17 analysts cover DRVN with a consensus score of 3.9/5. Average price target: $17.

What does Driven Brands Holdings Inc. do?Driven Brands, the largest automotive services company in North America by location count, operates 4,200+ locations in...

Driven Brands, the largest automotive services company in North America by location count, operates 4,200+ locations in 49 U.S. states and Canada under brands including Take 5 Oil Change, Meineke, Maaco, CARSTAR, and AutoGlassNow. The company generated approximately $1.9 billion in net revenue from $6.1 billion in system-wide sales in fiscal 2025, with a mix of company-operated and franchised locations across oil change, collision repair, paint, glass, and parts distribution.

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