Escalade (ESCA) AI Stock Analysis

• Market Cap: $205.44M
• Dividend Yield: 4.71%
• Average Volume (3M): 22.94K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.57
• Revenue Growth: -4.56%
• EPS Growth: -2.85%
• Country: US
• Employees: 450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.27
• Shares Outstanding: 13,696,311
• 10 Day Avg. Volume: 32,857
• 30 Day Avg. Volume: 22,936
• PEG Ratio: 2.12
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 6.52
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 9.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.95
• Revenue Forecast (FY): $242.20M

• Rating: 72 Outperform
• Price Target: $16.00 ▲(20.66% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is primarily driven by strong financial stability (very low leverage) and solid current cash generation, supported by constructive earnings-call signals (margin expansion, better cash flow, inventory reduction). Offsetting these positives are the sharp TTM revenue contraction and only moderate technical momentum, while valuation and the dividend yield provide an additional cushion.

Positive Factors

Balance Sheet Strength

Extremely low leverage (debt-to-equity ~0.05, recent net leverage ~0.3x) gives durable financial flexibility. It supports dividend increases, continued debt repayment, accretive M&A and higher capex without stressing liquidity during cyclical demand dips.

Consistent Free Cash Flow

Solid operating cash flow and FCF near reported earnings indicate strong cash conversion. This durable cash generation funds dividends, targeted growth investments and working-capital needs, enabling self-funded M&A and capex plans over the next several quarters.

Margin Improvement & Strategic M&A

Meaningful gross-margin expansion and accretive acquisitions diversify product mix into higher-margin niches (archery, cornhole). Combined with a new 110k sq ft facility, these structural moves enhance premium mix, scale benefits and operational flexibility over the medium term.

Negative Factors

Sharp TTM Revenue Decline

A large trailing revenue contraction signals weakened demand and lost scale, pressuring sustainable growth. Even with margins holding, prolonged top-line weakness reduces operating leverage, constrains reinvestment capacity and raises execution risk for growth strategies.

Product Mix & Price Sensitivity

Persistent softness at lower price points implies margin compression risk if mix shifts back to value items. Price-sensitive demand limits ability to pass through cost inflation and constrains sustainable margin expansion across consumer cycles.

Tariff and Regulatory Uncertainty

Exposure to tariff rulings creates durable cost and cash-flow volatility: potential one-time refunds or liabilities (~$4–$5M) and changing import costs could affect margins, working capital and vendor strategies if policy shifts recur over the next several quarters.

Escalade Business Overview & Revenue Model

Company Description

Escalade, Inc. (NASDAQ: ESCA) is a diversified sports, recreation, and leisure products company based in the United States. The company operates primarily through two segments: Sporting Goods and Commercial Products. It specializes in the design, manufacture, and marketing of a wide range of products including archery equipment, table tennis tables, and outdoor recreational products. Escalade serves various markets, including sporting goods retailers, and commercial customers, and is committed to providing high-quality products that enhance outdoor and recreational activities.

How the Company Makes Money

Escalade generates revenue through the sale of its products across its various segments. The Sporting Goods segment, which includes archery, table tennis, and other sports-related items, is a key revenue driver, catering to both retail and online markets. The Commercial Products segment contributes to revenue through the sale of products designed for commercial use, such as fitness and recreational equipment. Escalade's revenue model relies heavily on direct sales to consumers and partnerships with retailers, distributors, and commercial entities. Additionally, the company benefits from strategic partnerships that enhance product distribution and brand visibility, contributing to its overall earnings. Seasonal demand fluctuations, especially in outdoor and recreational categories, also impact revenue streams.

Escalade Financial Statement Overview

Summary

Balance sheet strength is a clear positive (very low leverage; debt-to-equity ~0.05) and cash generation is currently solid (positive operating cash flow and free cash flow, with FCF close to net income). However, financial performance is held back by a steep TTM revenue decline (~-57% vs. the prior period shown) and a downshift from stronger 2020–2022 earnings power despite still-positive margins.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined sharply (about -57% vs. the prior period shown), which is the biggest pressure point despite margins holding up reasonably (gross margin ~26%, EBIT margin ~7%, net margin ~5%). Profitability has been positive across all periods provided, but the longer-term trajectory shows weaker demand/scale versus 2020–2022, with net margin down notably from the higher levels seen in 2020–2021.

Balance Sheet

Leverage is very conservative in TTM (Trailing-Twelve-Months) with low debt relative to equity (debt-to-equity ~0.05), improving meaningfully from higher leverage in earlier years. Equity is sizable versus assets, and returns on equity are positive (~7–8% in TTM and 2024), though below the stronger profitability levels achieved in 2020–2022.

Cash Flow

Cash generation is solid in TTM (Trailing-Twelve-Months) with positive operating cash flow (~$31M) and free cash flow (~$28.5M), and free cash flow running close to reported earnings (free cash flow to net income ~0.94). However, cash flow has been volatile historically (negative free cash flow in 2020–2021) and TTM operating cash flow relative to revenue is lower than 2023–2024, suggesting some working-capital or conversion headwinds versus prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	240.16M	251.51M	263.57M	313.76M	313.61M
Gross Profit	64.08M	62.20M	61.77M	73.64M	77.13M
EBITDA	22.41M	26.12M	23.51M	32.38M	36.73M
Net Income	13.70M	12.99M	9.83M	17.99M	24.41M
Balance Sheet
Total Assets	222.11M	226.33M	253.00M	298.72M	251.80M
Cash, Cash Equivalents and Short-Term Investments	11.88M	4.19M	16.00K	3.97M	4.37M
Total Debt	19.76M	26.83M	59.83M	104.52M	60.56M
Total Liabilities	48.89M	57.33M	88.43M	140.24M	105.18M
Stockholders Equity	173.22M	169.00M	164.58M	158.47M	146.62M
Cash Flow
Free Cash Flow	28.50M	34.01M	46.24M	6.41M	-8.62M
Operating Cash Flow	31.01M	36.05M	48.33M	8.52M	1.07M
Investing Cash Flow	-4.81M	3.93M	-1.95M	-37.83M	-9.65M
Financing Cash Flow	-18.52M	-35.80M	-50.33M	28.90M	9.45M

Escalade Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESCA, the sentiment is Positive. The current price of 13.26 is below the 20-day moving average (MA) of 14.38, below the 50-day MA of 14.13, and above the 200-day MA of 13.03, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESCA.

Escalade Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCA	72 Outperform	$205.44M	13.56	8.03%	4.71%	-4.56%	-2.85%
JOUT	69 Neutral	$473.31M	-33.91	-5.18%	3.22%	-0.07%	-31.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FNKO	50 Neutral	$253.69M	52.16	-33.93%	―	-11.32%	-165.08%
AOUT	49 Neutral	$111.40M	10.46	-3.19%	―	2.85%	24.82%
CLAR	48 Neutral	$114.82M	-2.76	-33.17%	2.93%	30.34%	-1749.06%
XPOF	48 Neutral	$296.75M	-7.40	―	―	-3.55%	-111.90%

Escalade Corporate Events

Escalade Names Patrick Griffin Permanent CEO and President

On March 5, 2026, Escalade’s board appointed Patrick J. Griffin as the company’s full-time Chief Executive Officer and President, formalizing the position he had held on an interim basis since October 29, 2025. Griffin, a director since 2012 and former President of former subsidiary Martin Yale Group, has served in multiple leadership roles at Escalade since 2002, and his elevation without changes to previously disclosed compensation underscores a continuity-focused leadership transition with no related-party or conflict-of-interest concerns disclosed.

The most recent analyst rating on (ESCA) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Escalade stock, see the ESCA Stock Forecast page.

Escalade Boosts Dividend Amid Stronger Margins and Cash Flow

On February 26, 2026, Escalade’s board approved a quarterly dividend of $0.1525 per share, payable April 13, 2026, to shareholders of record on April 6, 2026. The move, an increase from prior levels, underscores management’s confidence in the company’s cash generation and balance sheet strength following a year of margin gains and debt reduction.

For the fourth quarter and full year ended December 31, 2025, Escalade reported lower net sales but higher profitability, with Q4 sales down 2.2% to $62.6 million and full-year sales down 4.5% to $240.2 million versus 2024. Gross margins improved to 27.7% in Q4 and 26.9% for the year, helping lift Q4 net income to $3.7 million and full-year profit to $13.7 million, while operating cash flow remained strong and total debt fell 27.9%, supported by efficiency gains, the accretive Gold Tip acquisition, and expansion moves such as the AllCornhole deal and a new 110,000-square-foot facility.

The most recent analyst rating on (ESCA) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Escalade stock, see the ESCA Stock Forecast page.

Escalade Acquires AllCornhole to Expand Market Presence

Escalade, Inc., a leading sporting goods company, has announced its acquisition of AllCornhole, a prominent brand in the fast-expanding cornhole market, marking a strategic step to strengthen its footprint in this segment. The acquisition reflects Escalade’s commitment to growing the professional and recreational cornhole ecosystem, complementing its existing partnerships and product offerings. By integrating AllCornhole, Escalade aims to enhance its product lineup and support the transformation of cornhole into a nationally recognized sport, benefitting retailers, athletes, and players across all skill levels.

The most recent analyst rating on (ESCA) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Escalade stock, see the ESCA Stock Forecast page.