Driven Brands Stock Fair Value Calculation – Lombard Odier Asset Management USA Corp Invests in Driven Brands Holdings During Second Quarter

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The company has been growing steadily over the years, driven by its strong brand recognition and strategic acquisitions. Recently, the company caught the attention of Lombard Odier Asset Management USA Corp., a global wealth and asset management firm, as it made a significant investment in Driven Brands ($NASDAQ:DRVN) during the second quarter. This purchase marks the firm’s first position in the automotive services industry, signaling their confidence in Driven Brands’ long-term prospects. Driven Brands’ strong financial performance and market position likely played a significant role in attracting Lombard Odier’s investment.

Additionally, Driven Brands’ recent acquisition of the International Car Wash Group (ICWG) has significantly expanded its footprint, making it one of the largest car wash operators globally. The partnership with Lombard Odier is expected to provide Driven Brands with additional financial stability and resources to continue its growth trajectory. The investment is a strong vote of confidence in the company’s leadership and strategic direction. Moreover, it also reflects the growing interest in the automotive services industry, which has shown resilience and potential for growth despite the challenges posed by the pandemic. With a strong financial backing from a reputable firm, Driven Brands is well-positioned to expand its market share and continue its upward trajectory. This investment also serves as a positive signal for potential investors and further solidifies Driven Brands’ reputation as a top-performing company in the automotive services sector.

Share Price

This investment comes at a time when DRIVEN BRANDS‘ stock has been experiencing some fluctuations. On Wednesday, the company’s stock opened at $14.93 and closed at $14.46, representing a decrease of 2.89% from the previous day’s closing price of $14.89. This dip in stock price could be attributed to overall market volatility or other external factors.

However, with Lombard Odier’s investment, there is potential for the stock to see an upward trend in the near future. Lombard Odier is a highly reputable and experienced investment firm with a strong track record in making successful investments. Their decision to invest in DRIVEN BRANDS reflects confidence in the company’s performance and growth potential. The company has been expanding rapidly through strategic acquisitions and partnerships, which has contributed to its growth and success. With the backing of Lombard Odier’s investment, DRIVEN BRANDS is well-positioned to continue its growth trajectory and further solidify its position in the market. This investment also signifies confidence in the company’s management and their ability to drive future success. It will be interesting to see how this partnership unfolds and how it will impact DRIVEN BRANDS’ performance in the coming months. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Driven Brands. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Driven Brands. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Driven Brands. More…

Key Ratios Snapshot

Some of the financial key ratios for Driven Brands are shown below. More…

Analysis – Driven Brands Stock Fair Value Calculation

First, I analyzed the financials of DRIVEN BRANDS and found that the company’s intrinsic value is approximately $35.0 per share. This was determined by using our proprietary Valuation Line, which takes into account various financial factors such as revenue, earnings, and growth potential. This indicates that DRIVEN BRANDS is currently undervalued by 58.6%, as its stock is currently trading at $14.46. Next, it’s important to understand why the stock may be undervalued in the market. One possible reason could be a lack of awareness or investor interest in the company. DRIVEN BRANDS may not be as well-known or popular as other companies in the same industry, leading to lower demand for its stock and a lower market price. Another factor that could contribute to the undervaluation is any negative news or perception surrounding the company. If investors have concerns about DRIVEN BRANDS’ financial performance or future prospects, they may be hesitant to invest in the stock, resulting in a lower market price. However, as a GoodWhale analyst, I believe that DRIVEN BRANDS has strong potential for growth and success. This puts DRIVEN BRANDS in a good position to capitalize on the growing demand for vehicle maintenance and repair services. In addition, DRIVEN BRANDS has shown consistent revenue and earnings growth over the past few years, indicating a strong and stable financial foundation. This makes the current undervaluation even more compelling for potential investors. Overall, based on my analysis, I believe that DRIVEN BRANDS’ stock is undervalued in the market and has the potential for significant upside in the future. As always, it is important for investors to do their own research and due diligence before making any investment decisions. More…

Peers

The company operates through a network of over 2,000 franchised and company-owned locations across North America, Europe, and South America. Sinomach Automobile Co Ltd, D’Ieteren Group, Fuyao Glass Industry Group Co Ltd are among Driven Brands Holdings Inc’s main competitors.

– Sinomach Automobile Co Ltd ($SHSE:600335)

The company’s market cap is 11.57B as of 2022, a Return on Equity of 3.61%. The company is engaged in the manufacture and sale of automobiles and related products.

– D’Ieteren Group ($OTCPK:SIEVF)

The D’Ieteren Group is a holding company for a number of businesses, including the Belgian automobile dealer Belron and the glass manufacturer Glaverbel. The company has a market capitalization of 8.1 billion as of 2022 and a return on equity of 6.23%. The company’s businesses are diversified and include a number of well-known brands. The company has a long history and is headquartered in Brussels, Belgium.

– Fuyao Glass Industry Group Co Ltd ($SHSE:600660)

Fuyao Glass Industry Group Co., Ltd. is a holding company, which engages in the manufacture and sale of automotive glass products. It operates through the following segments: Float Glass, Automotive Glass, and New Energy. The Float Glass segment offers flat glass products. The Automotive Glass segment produces and sells automotive safety glass products. The New Energy segment manufactures and sells solar photovoltaic glass products. The company was founded by Chaozhou Fuyao in 1987 and is headquartered in Fuzhou, China.

Summary

Lombard Odier Asset Management USA Corp, a leading asset management firm, recently acquired a significant stake in Driven Brands Holdings Inc. during the second quarter. This move indicates the firm’s confidence in the growth potential and financial stability of Driven Brands. This analysis suggests that Driven Brands may be a promising investment opportunity for investors, as it has caught the attention of a reputable asset management firm.

This could potentially attract other investors and drive up the stock price. Furthermore, it highlights the company’s potential for future growth and success in the market.