Escalade Inc. (ESCA)
NASDAQ:ESCA
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Escalade
(NASDAQ:ESCA)
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Rating:72Outperform
Price Target:
$18.50
▲(39.52% Upside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by financial stability (very conservative leverage and solid current free cash flow) and supportive price action (strong uptrend), tempered by the sharp TTM revenue contraction and overbought technical readings. Reasonable valuation and a constructive earnings call (margin expansion, cash flow improvement, disciplined growth focus) provide additional support.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and positive ROE give durable financial flexibility to fund operations, M&A, dividends and capex without stressing liquidity. This conservatism reduces insolvency risk and supports multi‑month strategic initiatives even if demand softens.
Negative Factors
Sharp revenue contraction
A large TTM revenue decline materially reduces scale and fixed‑cost absorption, threatening margin sustainability and limiting runways for growth investments. If secular demand weakness persists, restoring prior earnings power may take multiple quarters or longer.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and positive ROE give durable financial flexibility to fund operations, M&A, dividends and capex without stressing liquidity. This conservatism reduces insolvency risk and supports multi‑month strategic initiatives even if demand softens.
Read all positive factors
Escalade (ESCA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.52M
Dividend Yield4.71%
Average Volume (3M)22.94K
Price to Earnings (P/E)13.6
Beta (1Y)0.50
Revenue Growth-4.56%
EPS Growth-2.85%
CountryUS
Employees450
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)N/A
Shares Outstanding13,696,311
10 Day Avg. Volume32,857
30 Day Avg. Volume22,936
Financial Highlights & Ratios
PEG Ratio2.12
Price to Book (P/B)1.07
Price to Sales (P/S)0.77
P/FCF Ratio6.52
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit3.95
Enterprise Value/Ebitda11.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.95
Revenue Forecast (FY)$242.20M
Escalade Business Overview & Revenue Model
Company Description
Escalade, Incorporated, together with its subsidiaries, manufactures, distributes, imports, and sells sporting goods in North America, Europe, and internationally. The company provides various sporting goods brands in basketball goals, archery, in...
How the Company Makes Money
Escalade primarily makes money by selling sporting goods and recreational products to retailers and directly to consumers. Its core revenue stream is product sales across multiple categories (e.g., basketball systems and related accessories, game-...
Escalade Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operational and financial picture: improved gross margins (↑280 bps), stronger operating cash flow (≈+21%), inventory reduction (↓10%), accretive acquisitions, debt repayment and a strategic facility purchase. These positive developments offset a modest revenue decline (↓2.2%), category softness in lower-priced items, a one-time SG&A increase, and tariff-related uncertainty (~$4–$5 million potential). Overall the company emphasized a transition from cost optimization to disciplined, profitable growth backed by healthy free cash flow and targeted investments.Positive Updates
Revenue and Profitability Snapshot
Net sales of $62.6 million for the quarter; net income of $3.7 million or $0.27 per diluted share. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased $0.6 million to $6.5 million (≈+10.2% vs prior year).
Negative Updates
Revenue Decline
Net sales declined 2.2% year-over-year in the quarter, reflecting softer consumer demand in discretionary categories and e-commerce (notably basketball and outdoor games).
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Profitability Snapshot
Net sales of $62.6 million for the quarter; net income of $3.7 million or $0.27 per diluted share. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased $0.6 million to $6.5 million (≈+10.2% vs prior year).
Read all positive updates
Company Guidance
Management guided a shift from cost optimization to profitable growth in 2026 and provided several specific metrics: Q4 net sales were $62.6M (down 2.2% YoY), net income $3.7M or $0.27 per diluted share, EBITDA rose to $6.5M, gross margin expanded 280 basis points to 27.7% (from 24.9%), operating cash flow was $14.9M (vs. $12.3M), cash and equivalents were $11.9M, total debt $18.5M with net leverage of 0.3x after nearly $2M of debt repayment, and inventory declined 10% YoY (~$7.6M) as they work toward a longer‑term 3.0x inventory‑turn target; they expect increased capital expenditures in 2026, purchased a 110,000 sq ft U.S. facility, completed the accretive Gold Tip acquisition and acquired AllCornhole, plan further accretive M&A and targeted growth investments funded by strong free cash flow, view consumer conditions as mixed, and noted a potential tariff refund of roughly $4–5M while seeing no immediate tariff impact.Escalade Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
84
Very Positive
Cash Flow
68
Positive
| 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
Positive
13.26
Price Trends
15.60
Positive
14.33
Positive
13.30
Positive
Market Momentum
0.61
Positive
59.54
Neutral
40.81
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 17.43, below the 50-day MA of 15.60, and below the 200-day MA of 13.30, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESCA.
Escalade Risk Analysis
Escalade disclosed 38 risk factors in its most recent earnings report. Escalade reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Escalade Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $243.52M | 13.56 | 8.03% | 4.71% | -4.56% | -2.85% | |
69 Neutral | $512.21M | -33.91 | -5.18% | 3.22% | -0.07% | -31.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $209.37M | -2.75 | -35.34% | ― | -11.32% | -165.08% | |
48 Neutral | $105.61M | -2.76 | -21.24% | 2.93% | 30.34% | -1749.06% | |
47 Neutral | $118.40M | -6.98 | -3.19% | ― | 2.85% | 24.82% | |
47 Neutral | $359.97M | -2.45 | ― | ― | -3.55% | -111.90% |
* Consumer Cyclical Sector Average
ESCA
Escalade
17.78
3.09
21.04%
CLAR
Clarus
2.75
-0.75
-21.38%
JOUT
Johnson Outdoors
49.52
26.84
118.38%
FNKO
Funko
3.77
-1.63
-30.19%
AOUT
American Outdoor Brands
9.40
-2.28
-19.52%
XPOF
Xponential Fitness
7.35
-0.40
-5.16%
Escalade Corporate Events
Executive/Board Changes
Escalade Names Patrick Griffin Permanent CEO and President
Positive
Mar 6, 2026
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 sinc...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Escalade Boosts Dividend Amid Stronger Margins and Cash Flow
Positive
Feb 27, 2026
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...
Business Operations and StrategyM&A Transactions
Escalade Acquires AllCornhole to Expand Market Presence
Positive
Dec 17, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.