Driven Brands Holdings Inc. (DRVN)
Consumer Cyclical
- Fundamental
- 3
- Sentiment
- 3
- Technical
- 2
Do Nothing: technicalScore 2 (price below all MAs with MACD -0.31/-0.03 and ADX 12.35) fails the tradable-setup threshold; a pullback/oversold limit is blocked by the trend-alignment gate (countertrend — below SMA50 with MACD < 0, and below a declining SMA200 without a momentum reclaim), and no breakout stop qualifies — a trigger above the settled 12.31–12.36 highs enters into SMA20 overhead with no momentum confirmation.
Company overview
Driven Brands Holdings Inc. provides a range of automotive services including paint and collision restoration, glass repair, vehicle maintenance, and car washing across the U.S., Canada, and internationally. It also distributes automotive parts and offers training programs for industry professionals. The company operates under various brand names such as Take 5 Oil Change, CARSTAR, and Maaco.
Fundamental
fairDriven Brands shows strong profitability and cash generation but faces leverage and internal control risks.
Attractive operating margins and cash generation with a reasonable valuation (TTM P/E ~12, EV/EBITDA ~10.8, free-cash-flow yield ~6%). The main offsets are leverage (net debt/EBITDA ~5.3, Altman Z ~0.94) and SEC-disclosed financial restatements, unremediated material weaknesses in internal controls, and related litigation. The latest 10-Q shows solid liquidity and covenant compliance, making this more a leveraged-but-improving deleveraging story than a clean low-risk compounder.
Sentiment
fairSentiment is mixed with positive buyback news offset by bearish analyst coverage and litigation overhang.
Mixed, forming setup: the $100M buyback and capital-allocation reset (announced 2026-09-15) was demonstrably rewarded — shares gapped up — while BofA's Underperform initiation at $12 (2026-09-10) cut the other way, firing the conflicting-signals moderate cap. Sentiment delta is determinate but essentially flat (baseline +0.03 → scoring +0.06), with silent retail and no forward-dated catalyst.
Technical
weakThe stock is in a downtrend, trading below all moving averages with negative momentum indicators.
Weak bearish structure: price closed 12.11 below all eight moving averages (SMA20 12.67, SMA50 13.44, SMA200 13.76, EMA9 12.37, EMA21 12.66) with MACD still negative (line -0.31, histogram -0.03) and a trendless, declining ADX14 12.35. The only bullish reads are a deeply oversold Williams %R -92.02 and a triple-tested support shelf near 12.00 (lows 12.00/11.97/12.05 on 09-16/09-17/09-21) — a bounce-only configuration, not a confirmed turn. Any limit dip-buy is additionally countertrend (below SMA50 with MACD < 0, and below a declining SMA200 with SMA50 < SMA200 and no momentum reclaim), so no qualifying setup exists.
You’re looking at 2026-09-21 — more than 2 trading days ago.
Subscribers saw this then, and see today’s score, verdict and trade plan now.
More Consumer Cyclical
Not financial advice. For informational and educational purposes only.