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Driven Brands Holdings Inc. (DRVN) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Cyclical · Auto & Truck Dealerships

Sell if holding. Engine safety override at $13.86: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 24%; Elevated put/call ratio: 2.00; Below-average business quality.

Driven Brands is the largest automotive services company in North America with ~5,200 locations across 49 U.S. states and 13 other countries, operating brands including Take 5 Oil, Meineke, MAACO, CARSTAR, and Take 5 Car Wash. The network generated approximately $2.3 billion in... Read more

$13.86+11.9% A.UpsideScore 4.9/10#9 of 16 Auto & Truck Dealerships
QualityF-score6 / 9FCF yield8.33%
Stop $13.24Target $15.93(analyst − 13%)A.R:R 0.8:1
Analyst target$18.30+32.1%10 analysts
$15.93our TP
$13.86price
$18.30mean
$11
$22

Sell if holding. Engine safety override at $13.86: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 24%; Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.9/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Driven Brands Holdings Inc.

Material events (past 30 days)

  • Apr 21, 2026 HIGH Item 3.01: On April 15, 2026, Nasdaq notified the Company of listing deficiency due to failure to timely file FY2025 Form 10-K. Company delayed filing due to material errors and restatement of prior financial statements.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.4 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)11.6
Mkt Cap$2.3B
EV/EBITDA12.7
Profit Mgn-8.1%
ROE-27.3%
Rev Growth6.6%
Beta0.97
DividendNone
Rating analysts17

Quality Signals

Piotroski F6/9

Options Flow

P/C2.00bearish
IV102%elevated
Max Pain$20+44.3% vs spot

Material Events(8-K, last 90d)

  • 2026-04-21Item 3.01HIGH
    On April 15, 2026, Nasdaq notified the Company of listing deficiency due to failure to timely file FY2025 Form 10-K. Company delayed filing due to material errors and restatement of prior financial statements.
    SEC filing →
  • 2026-02-25Item 4.02HIGH
    Audit Committee concluded material errors existed in consolidated financial statements for fiscal years 2024 and 2023, including quarterly periods through September 2025. Restatement required, primarily related to completeness and accuracy of lease recording (right-of-use assets). Prior financial statements should not be relied upon.
    SEC filing →

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

Rating Breakdown

4 floor-breakers

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

Bollinger
0.1
Support Resistance
0.3
52w Position
4.4

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

Put Call
0.0
Implied Vol
0.0
Volatility
0.1
Short Interest
1.1
Debt Equity
1.5
Days To Cover
1.6
Max Pain Risk
7.0
Beta
7.2
High short interest justified: 24%Elevated put/call: 2.00High IV: 102%

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
Moat
4.4
Operating Margin
4.6
Fcf Quality
5.6
Piotroski F
6.7
FCF-positive but moderate margins (FCF margin 8%, FCF yield 8.3%)No competitive moat

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.0
Value Rank
3.1
Growth Rank
6.3
GatesA.R:R 0.8 < 1.5@spotDeath cross (50MA < 200MA)Momentum 6.2>=5.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
64 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $11.66Resistance $14.32

Price Targets

$13
$16
A.Upside+14.9%
A.R:R0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.4 < 4.0)
! Reward/Risk 0.8:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-07 (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. Engine safety override at $13.86: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 24%; Elevated put/call ratio: 2.00; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $13.24. Score 4.9/10, moderate confidence.

What is the DRVN stock price target?

Take-profit target: $15.93 (+11.9% upside). Prior stop was $13.24. Stop-loss: $13.24.

What are the risks of investing in DRVN?

Quality below floor (3.4 < 4.0).

Is DRVN overvalued or undervalued?

Driven Brands Holdings Inc. trades at a P/E of N/A (forward 11.6). TrendMatrix value score: 7.2/10. Verdict: Sell.

What do analysts say about DRVN?

17 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 ~5,200 locations across 49 U.S. states...

Driven Brands is the largest automotive services company in North America with ~5,200 locations across 49 U.S. states and 13 other countries, operating brands including Take 5 Oil, Meineke, MAACO, CARSTAR, and Take 5 Car Wash. The network generated approximately $2.3 billion in net revenue from approximately $6.5 billion in system-wide sales in 2024 via franchising and company-operated stores.

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