Driven Brands HoldingsDRVN +3.91%79 Gross Margin % is 51.49% as of Mar. 2026, which is 1% above its 10-year median of 51.05. GuruFocus rates DRVN with a GF Score™ of 79/100 and a GF Value™ of $16.30 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Driven Brands Holdings ranks better than 93.83% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Driven Brands Holdings had a gross margin of 51.49% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Driven Brands Holdings Gross Margin % Related Terms
Driven Brands Holdings Gross Margin % Historical Data
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The historical data trend for Driven Brands Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Driven Brands Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Driven Brands Holdings Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Driven Brands Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Driven Brands Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Driven Brands Holdings (DRVN) has a Gross Margin % of 51.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Driven Brands Holdings and its competitors. This is near median its historical median of 51.05. Over the past decade, Driven Brands Holdings' Gross Margin % has ranged from 47.28 to 56.99. According to the industry distribution chart, Driven Brands Holdings ranks #81 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 6.2%.
Is Driven Brands Holdings' Gross Margin % too high?
Driven Brands Holdings' current Gross Margin % of 51.49% is near median its 10-year median of 51.05. Over the past 10 years, this metric has ranged from a low of 47.28 to a high of 56.99. The Vehicles & Parts industry median Gross Margin % is 19.84. Driven Brands Holdings' value of 51.49% is 159.5% above this industry median. Based on the distribution chart, Driven Brands Holdings ranks #81 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Driven Brands Holdings has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Driven Brands Holdings' Gross Margin % compare to MCW and SAH?
According to the Vehicles & Parts industry distribution chart, Driven Brands Holdings ranks #81 out of 1313 companies for Gross Margin %. This places Driven Brands Holdings in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Driven Brands Holdings' value of 51.49% is 159.5% above this benchmark. Historically, Driven Brands Holdings' own Gross Margin % has ranged from 47.28 to 56.99 over the past decade. While the company's 10-year median is 51.05 vs. the industry median of 19.84, Driven Brands Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Driven Brands Holdings's current Gross Margin % of 51.49% is 159.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Driven Brands Holdings and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Driven Brands Holdings's current Gross Margin % is 51.49%, which is near median its own 10-year median of 51.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Driven Brands Holdings stock overvalued right now?
Based on GuruFocus' analysis, Driven Brands Holdings (DRVN) is currently considered Modestly Undervalued. The stock's GF Value™ is $16.30, compared to a current price of $14.02 — trading 14% below its estimated fair value. The current Gross Margin % is 51.49%, which is near median its 10-year median of 51.05 and 159.5% above the Vehicles & Parts industry median of 19.84. Driven Brands Holdings' overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Driven Brands Holdings (DRVN), the current Gross Margin % is 51.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Driven Brands Holdings (DRVN) Overvalued in 2026?
Based on GuruFocus' analysis, Driven Brands Holdings stock appears to be undervalued.
The current stock price of $14.02 is trading 14% below its estimated GF Value™ of $16.30.
GuruFocus considers Driven Brands Holdings to be Modestly Undervalued.
Key valuation signals for DRVN:
Gross Margin %: 51.49% (near median its 10-year median of 51.05)
GF Value™: $16.30 vs. price of $14.02 (14% below fair value)
Industry Position: 159.5% above the Vehicles & Parts median (#81 of 1313)
No single metric tells the full story. See the DRVN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Driven Brands Holdings Inc is an automotive services company in North America. Its platform provides high-quality services to an extensive range of retail and commercial customers. The company provides an extensive range of core consumer and commercial automotive needs, including paint, collision, glass, and repair services, as well as a variety of high-frequency services, such as oil changes and car washes. The company segments; Take 5, Franchise Brands, and Auto Glass Now. It derives maximum revenue from Take 5 Segment. Geographically, the company operates into United States, Canada and Rest of the World.
79GF Score
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