Escalade (ESCA) AI Stock Analysis

• Market Cap: $191.73M
• Dividend Yield: 4.71%
• Average Volume (3M): 22.94K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.59
• Revenue Growth: -4.56%
• EPS Growth: -2.85%
• Country: US
• Employees: 450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.40
• Shares Outstanding: 13,803,745
• 10 Day Avg. Volume: 32,857
• 30 Day Avg. Volume: 22,936
• PEG Ratio: 0.50
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 5.83
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 9.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $16.00 ▲(20.66% Upside)
• Action: Upgraded Date: 12/19/25
• Date: Action: Upgraded 12/19/25

Escalade's strong valuation and positive technical indicators are key strengths, supported by strategic acquisitions. However, inconsistent revenue growth and cash flow challenges slightly temper the outlook.

Positive Factors

Balance sheet strength

Escalade's low leverage and stable equity ratio provide durable financial flexibility, enabling continued investment in product development, acquisitions, and dividend payments. A conservative balance sheet helps the company weather cyclical leisure demand and supports multi-year strategic initiatives.

Sustained margin improvement

A 344-basis-point gross margin lift driven by lower fixed costs and inventory improvements indicates structural cost efficiencies. If maintained via facility consolidation and disciplined pricing, higher margins can sustainably boost earnings power and fund reinvestment independent of volatile top-line swings.

Strategic acquisitions and product expansion

Targeted M&A (Gold Tip, AllCornhole) and new product launches expand category leadership in archery and games, enhancing distribution and cross-sell opportunities. These structural moves deepen product ecosystem and should support steady market-share gains over multiple years.

Negative Factors

Declining free cash flow

Reduced free cash flow and weaker operating cash conversion limit internal funding for capex, acquisitions, and dividends. Persistent FCF declines raise refinancing and flexibility risks, particularly if the company continues strategic inventory builds or faces tariff-driven cost pressures.

Inconsistent revenue growth

Volatile top-line trends hinder predictable scale benefits and long-term planning. Inconsistent revenue increases pressure margin sustainability and makes return on recent acquisitions and product investments harder to realize, increasing execution risk over the next several quarters.

Leadership transition risk

An interim CEO creates short-term strategic and execution uncertainty around integrations, cost programs and M&A. Leadership shifts can slow decision-making and affect long-term strategy continuity, which is material when the company is executing acquisitions and product rollouts.

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

Escalade shows stable profitability with a strong balance sheet, characterized by low leverage. However, inconsistent revenue growth and declining free cash flow pose risks.

Income Statement

Escalade's income statement shows a stable gross profit margin of around 25% over the years, with a slight increase in the TTM period. The net profit margin has remained consistent, indicating stable profitability. However, revenue growth has been inconsistent, with a decline in recent years after a significant increase in 2020. The EBIT and EBITDA margins are healthy, suggesting efficient operations, but the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio in the TTM period, improving from previous years. Return on equity has been decreasing, indicating reduced profitability from equity. The equity ratio is stable, showing a solid financial foundation. The reduction in debt over time is a positive sign for financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, particularly in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	241.54M	251.51M	263.57M	313.76M	313.61M	273.65M
Gross Profit	62.67M	62.20M	61.77M	73.64M	77.13M	74.83M
EBITDA	22.10M	26.12M	23.51M	32.38M	36.73M	37.05M
Net Income	12.70M	12.99M	9.83M	17.99M	24.41M	25.93M
Balance Sheet
Total Assets	232.46M	226.33M	253.00M	298.72M	251.80M	220.71M
Cash, Cash Equivalents and Short-Term Investments	3.51M	4.19M	16.00K	3.97M	4.37M	3.50M
Total Debt	8.53M	26.83M	59.83M	104.52M	60.56M	31.69M
Total Liabilities	60.13M	57.33M	88.43M	140.24M	105.18M	81.55M
Stockholders Equity	172.33M	169.00M	164.58M	158.47M	146.62M	139.16M
Cash Flow
Free Cash Flow	26.59M	34.01M	46.24M	6.41M	-8.62M	-2.82M
Operating Cash Flow	28.41M	36.05M	48.33M	8.52M	1.07M	2.63M
Investing Cash Flow	-3.41M	3.93M	-1.95M	-37.83M	-9.65M	-21.03M
Financing Cash Flow	-21.91M	-35.80M	-50.33M	28.90M	9.45M	16.02M

Escalade Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.30, below the 50-day MA of 13.76, and above the 200-day MA of 13.04, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 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	$191.73M	15.26	7.42%	4.71%	-4.56%	-2.85%
JOUT	66 Neutral	$506.00M	-22.06	-7.78%	3.22%	-0.07%	-31.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	52 Neutral	$411.51M	-5.06	―	―	-3.55%	-111.90%
FNKO	50 Neutral	$233.75M	-3.47	-32.77%	―	-11.32%	-165.08%
AOUT	49 Neutral	$113.91M	-20.48	-3.19%	―	2.85%	24.82%
CLAR	45 Neutral	$126.73M	-1.55	-33.17%	2.93%	30.34%	-1749.06%

Escalade Corporate Events

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.