Escalade (ESCA) AI Stock Analysis

• Market Cap: $247.90M
• Dividend Yield: 4.71%
• Average Volume (3M): 22.94K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.50
• Revenue Growth: -4.56%
• EPS Growth: -2.85%
• 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: 1.04
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: 11.38
• 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: $18.50 ▲(39.52% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 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.

Strong cash generation

Consistent positive operating and free cash flow provides a stable internal funding source for dividends, capital expenditures and accretive M&A. High cash conversion supports disciplined growth spending and lowers reliance on external financing over the coming months.

Accretive M&A and capacity expansion

Targeted acquisitions and a strategy of complementary deals expand product mix and premium offerings, while recent facility purchases increase domestic warehousing and operational flexibility. Combined, these moves can sustainably improve margins and market reach.

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.

Category and mix pressure

Structural softness in lower‑price segments and e‑commerce/basketball/outdoor games pressure revenue and pricing power. Persistent mix headwinds can cap margin expansion and slow topline recovery, especially if consumer price sensitivity endures.

Tariff/regulatory uncertainty

Unresolved tariff exposure creates recurring earnings volatility and planning difficulty for sourcing and pricing. A worst‑case tariff outcome could erode recent margin gains and force cost pass‑through or margin compression over several quarters.

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, indoor and outdoor game recreation, and fitness products. It offers archery products under the Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, Karnage, Fletcher, SIK, BearX, and Rocket brand names; table tennis products under the STIGA and Ping-Pong brands; basketball goals under the Goalrilla, Goaliath, Silverback, Hoopstar, and Goalsetter brand names; and pickleball under the Onix, DURA, and Pickleball Now brands. The company also provides play systems under the Woodplay, Jack & June, and Childlife brands; fitness products under the STEP, Lifeline, Kettleworx, Natural Fitness, and PER4M brand names; safety products under the USWeight brand; hockey and soccer game tables under the Triumph Sports, Atomic, American Legend, Air Hockey, and HJ Scott brands; and billiard tables and accessories under the American Heritage Billiards, Brunswick Billiards, Gold Crown, Centennial, Cue&Case, Lucasi, Mizerak, PureX, Rage, Players, Minnesota Fats, and Mosconi brand names. In addition, it offers darting products under the Unicorn, Winmau, Arachnid, Accudart, and Nodor brands; water sports products under the RAVE Sports brand; and outdoor game products under the Victory Tailgate, Triumph Sports, Zume Games, and Viva Sol brand names. The company provides its products through sporting goods retailers, specialty dealers, online retailers, traditional department stores, and mass merchants. Escalade, Incorporated was founded in 1922 and is headquartered in Evansville, Indiana.

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-room/table games, and fitness/recreation equipment) under various owned brands. Revenue is generated through (1) wholesale distribution, where Escalade sells inventory in bulk to mass-market and sporting-goods retailers and distributors that then resell to end customers, and (2) direct-to-consumer sales, where products are sold through e-commerce and other direct channels, allowing the company to capture retail margin and control the customer experience. The company’s earnings are influenced by factors such as consumer demand for at-home and recreational activities, seasonality in sporting goods, pricing and promotional activity with retail partners, product mix (higher- vs. lower-margin items), sourcing and freight costs, and the effectiveness of brand marketing and retail placement. Information on specific significant partnerships beyond general retail distribution relationships is null.

Escalade Financial Statement Overview

Summary

Financials are mixed: the balance sheet is a major strength with very low leverage (debt-to-equity ~0.05) and positive ROE, and cash generation is currently solid (positive operating cash flow and free cash flow with strong conversion). The main drag is a sharp TTM revenue contraction (about -57%) and a downshift from 2020–2022 earnings power, which raises demand/scale concerns 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: Negative
• STOCH: Negative

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 15.26, below the 50-day MA of 14.62, and above the 200-day MA of 13.12, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 78.10 is Negative, neither overbought nor oversold. The STOCH value of 81.61 is Negative, 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	$247.90M	13.56	8.03%	4.71%	-4.56%	-2.85%
JOUT	69 Neutral	$459.45M	-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	49 Neutral	$210.01M	-252.62	-35.34%	―	-11.32%	-165.08%
CLAR	48 Neutral	$103.30M	-2.76	-33.17%	2.93%	30.34%	-1749.06%
AOUT	47 Neutral	$103.29M	-6.98	-3.19%	―	2.85%	24.82%
XPOF	47 Neutral	$279.65M	-2.45	―	―	-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.