Driven Brands Holdings Inc. cash flow to debt ratio of 12.42% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Driven Brands Holdings Inc.'s free cash flow has increased -329.02% from $-47.06M last year to $107.77M, signaling increasing performance

Driven Brands Holdings Inc.'s debt to equity ratio is 2.66, which means that the company's assets are unhealthy financed, signaling financial risk.

Driven Brands Holdings Inc.'s debt has decreased relative to shareholder equity from 6.58 last year to 2.66 today, signaling strengthened financials

Driven Brands Holdings Inc. has a net debt to EBITDA ratio of 6.52x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Driven Brands Holdings Inc.'s interest coverage ratio of 3.08 indicates that earnings with margin can cover interest payments on company debt

Driven Brands Holdings Inc.'s profit margin has increased (-158.08%) in the last year from -16.97% to 9.86%, signaling increasing performance

Driven Brands Holdings Inc.'s short-term liabilities of $725.81M exceed its short-term assets of $540.85M, signaling financial risk

Driven Brands Holdings Inc.'s return on assets of 4.98% is lower than the 5.00% threshold, indicating inefficient asset utilization

Driven Brands Holdings Inc.'s return on equity of 22.09%, is higher than 15.00%, indicating good performance

Driven Brands Holdings Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Driven Brands Holdings Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Driven Brands Holdings Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Driven Brands Holdings Inc. has a free cash flow yield of 5.21%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Driven Brands Holdings Inc.'s yearly earnings has increased -147.12% since last year from $-297.45M to $140.16M, signaling increasing performance

Driven Brands Holdings Inc.'s yearly revenue has decreased 20.39% since last year from $2.34B to $1.86B, signaling decreasing performance

ROIC 9.42% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Driven Brands Holdings Inc.'s 3-year revenue CAGR of -2.88% is negative, indicating declining revenue over the past 3 years

Driven Brands Holdings Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Driven Brands Holdings Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Driven Brands Holdings Inc. has insufficient data to evaluate this check.

Driven Brands Holdings Inc. has an earnings yield of 8.55%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Driven Brands Holdings Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Driven Brands Holdings Inc. has an EV/EBITDA ratio of 11.78x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Driven Brands Holdings Inc. has insufficient data to evaluate this check.

Driven Brands Holdings Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Driven Brands Holdings Inc. has a price-to-book ratio of 2.47x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Driven Brands Holdings Inc. has a price-to-sales ratio of 1.15x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue