Skip to main content

Driven Brands Holdings Inc. (DRVN) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5Moderate Confidence

Consumer Cyclical · Auto & Truck Dealerships

Earnings in 6 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Engine safety override at $13.45: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: High short interest: 24%; Below-average business quality; Below long-term trend.

Driven Brands is the largest automotive services company in North America with approximately 5,200 locations across 49 U.S. states and 13 other countries under brands including Take 5 Oil Change, Meineke, MAACO, CARSTAR, Take 5 Car Wash, AutoGlassNow, Fix Auto, and... Read more

$13.45+18.6% A.UpsideScore 5.4/10#7 of 16 Auto & Truck Dealerships
Stop $12.50Target $15.95(analyst − 13%)A.R:R 1.4:1
Analyst target$18.34+36.3%9 analysts
$15.95our TP
$13.45price
$18.34mean
$11
$22

Sell if holding. Engine safety override at $13.45: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: High short interest: 24%; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 62. Score 5.4/10, moderate confidence.

Passes 4/7 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.5 < 4.0)
Value-trap signals (2/5): High leverage (D/E 4.6), Material insider selling (7 sells, 0.07% of cap)

Key Metrics

P/E (TTM)
P/E (Fwd)10.2
Mkt Cap$2.1B
EV/EBITDA12.1
Profit Mgn-8.1%
ROE-27.3%
Rev Growth6.6%
Beta1.01
DividendNone
Rating analysts16

Quality Signals

Piotroski F6/9

Options Flow

P/C0.02bullish
IV71%elevated
Max Pain$3-81.4% vs spot

Material Events(8-K, last 90d)

  • 2026-02-25Item 4.02HIGH
    Audit Committee concluded material errors exist in financial statements for fiscal years 2024 and 2023 and quarterly periods through Q3 2025. Statements should not be relied upon and require restatement. Primary category: lease accounting errors.
    SEC filing →

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

Rating Breakdown

2 floor-breakers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.2
Support Resistance
3.0
Gap
3.0
52w Position
3.6
Extreme gap up (11.2%) - may pull back

Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static

Roe
0.0
Net Margin
0.0
Roa
1.7
Current Ratio
3.6
Gross Margin
4.4
Operating Margin
4.6
Moat
5.0
Fcf Quality
5.6
Piotroski F
6.7
FCF-positive but moderate margins (FCF margin 8%, FCF yield 9.3%)No competitive moat
GatesA.R:R 1.4 < 1.5@spotEARNINGS PROXIMITY 6d<=7dDeath cross (50MA < 200MA)Momentum 7.6>=5.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
62 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $11.66Resistance $14.21

Price Targets

$13
$16
A.Upside+18.6%
A.R:R1.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.5 < 4.0)
! Value-trap signals (2/5): High leverage (D/E 4.6), Material insider selling (7 sells, 0.07% of cap)
! Reward/Risk 1.4:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-06 (6d)

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. Engine safety override at $13.45: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: High short interest: 24%; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 62. Prior stop was $12.50. Score 5.4/10, moderate confidence.

What is the DRVN stock price target?

Take-profit target: $15.95 (+18.6% upside). Prior stop was $12.50. Stop-loss: $12.50.

What are the risks of investing in DRVN?

Quality below floor (3.5 < 4.0); Value-trap signals (2/5): High leverage (D/E 4.6), Material insider selling (7 sells, 0.07% of cap).

Is DRVN overvalued or undervalued?

Driven Brands Holdings Inc. trades at a P/E of N/A (forward 10.2). TrendMatrix value score: 7.8/10. Verdict: Sell.

What do analysts say about DRVN?

16 analysts cover DRVN with a consensus score of 3.9/5. Average price target: $18.

What does Driven Brands Holdings Inc. do?Driven Brands is the largest automotive services company in North America with approximately 5,200 locations across 49...

Driven Brands is the largest automotive services company in North America with approximately 5,200 locations across 49 U.S. states and 13 other countries under brands including Take 5 Oil Change, Meineke, MAACO, CARSTAR, Take 5 Car Wash, AutoGlassNow, Fix Auto, and 1-800-Radiator. Generated approximately $2.3B in net revenue from approximately $6.5B in system-wide sales in 2024.

Related stocks: OPLN (OPENLANE, Inc.) · CARG (CarGurus, Inc.) · VVV (Valvoline Inc.) · BGSI (Boyd Group Services Inc.) · MCW (Mister Car Wash, Inc.)