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Escalade
(NASDAQ:ESCA)
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Rating:71Outperform
Price Target:
$21.50
▲(15.41% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by resilient financial health (low leverage and improving returns) and better recent profitability. Offsetting factors are less consistent cash flow trends and earnings quality concerns due to reliance on a one-time tariff refund in the latest quarter. Technicals are supportive with the stock trading above key moving averages, while valuation is moderate with a ~3% dividend yield.
Positive Factors
Strong balance sheet & low leverage
Escalade's balance sheet shows durable financial flexibility: very low TTM leverage (debt-to-equity ~0.10), a sizable equity base and recent debt paydowns. This structural strength supports stable dividends, acquisition optionality and resilience to macro shocks over the next several quarters.
Negative Factors
Material reliance on nonrecurring tariff recovery
A significant portion of recent EBITDA was driven by a one-time $9.9M tariff refund, which inflates headline operating performance. Relying on such nonrecurring items masks underlying operating profitability and could lead to disappointment if margins re-normalize without follow-on organic improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & low leverage
Escalade's balance sheet shows durable financial flexibility: very low TTM leverage (debt-to-equity ~0.10), a sizable equity base and recent debt paydowns. This structural strength supports stable dividends, acquisition optionality and resilience to macro shocks over the next several quarters.
Read all positive factors
Escalade (ESCA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$288.25M
Dividend Yield3.05%
Average Volume (3M)33.63K
Price to Earnings (P/E)11.9
Beta (1Y)0.63
Revenue Growth0.97%
EPS Growth80.59%
CountryUS
Employees444
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.67
Shares Outstanding13,805,038
10 Day Avg. Volume27,989
30 Day Avg. Volume33,625
Financial Highlights & Ratios
PEG Ratio2.11
Price to Book (P/B)1.07
Price to Sales (P/S)0.77
P/FCF Ratio6.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.08
Revenue Forecast (FY)$245.70M
Escalade Business Overview & Revenue Model
Company Description
Escalade, Inc. is a globally operating enterprise that manufactures, distributes, imports, and sells a diverse range of sporting and recreational equipment. The company's reach extends throughout North America, Europe, and other international mark...
How the Company Makes Money
Escalade makes money primarily by selling sporting goods and recreation products to customers through two main channels: (1) large retailers and sporting goods chains (wholesale) and (2) direct-to-consumer sales via e-commerce. Revenue is generate...
Escalade Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive operational and strategic progress—organic revenue growth (+6%), gross margin expansion (+146 bps), new product traction, inventory reduction and improved cash/balance sheet flexibility—while also relying substantially on a $9.9 million tariff refund to drive much of the quarter’s headline profitability. Near-term risks include a notable decline in operating cash flow (~34.6%), higher SG&A from recent acquisitions, softer demand in outdoor games, and exposure to freight/commodity inflation and potential future tariffs. Given meaningful positives tempered by several material short-term and nonrecurring headwinds, the tone of the call is balanced.Positive Updates
Revenue Growth
Net sales of $57.7 million in Q2 2026, representing a 6% year-over-year increase driven by new archery products, contribution from the Sept 2025 Gold Tip acquisition, and strength in safety, table tennis and basketball categories.
Negative Updates
Reliance on Nonrecurring Tariff Refund
The quarter’s operating and EBITDA performance was materially aided by a $9.9 million tariff refund; this is a nonrecurring benefit that may overstate underlying operating performance going forward.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $57.7 million in Q2 2026, representing a 6% year-over-year increase driven by new archery products, contribution from the Sept 2025 Gold Tip acquisition, and strength in safety, table tennis and basketball categories.
Read all positive updates
Company Guidance
Escalade guided that in H2 2026 it will deploy the $9.9 million tariff refund to offset higher freight, commodity and potential new tariff costs, fund incremental consumer and trade promotions and product innovation, and invest in capital improvements, while not planning near‑term price increases and instead using the refund to absorb cost pressures and support promotions in Q3–Q4; management also reiterated plans to reduce inventory further toward a longer‑term target of ~3x turns after inventory fell $1.5 million YoY in Q2. The company emphasized confidence in continued profitable top‑line growth given Q2 results — net sales $57.7 million (+6% YoY), net income $9.4 million ($0.68 diluted), gross margin 26.2% (+146 bps YoY), EBITDA $13.2 million (vs. $3.9 million prior) — and a strengthened balance sheet (cash $16.4 million, up $3.3 million QoQ; total debt $14.9 million, repaid ~$1.8 million of long‑term debt in the quarter) while remaining mindful of H2 macro headwinds such as higher energy costs and inflation.Escalade Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 243.83M | 240.16M | 251.51M | 263.57M | 313.76M | 313.61M |
| Gross Profit | 66.94M | 62.35M | 62.20M | 61.77M | 73.64M | 77.13M |
| EBITDA | 35.19M | 23.92M | 26.12M | 23.51M | 32.46M | 36.89M |
| Net Income | 23.07M | 13.70M | 12.99M | 9.83M | 17.99M | 24.41M |
Balance Sheet | ||||||
| Total Assets | 234.52M | 222.11M | 226.33M | 253.00M | 298.72M | 251.80M |
| Cash, Cash Equivalents and Short-Term Investments | 16.39M | 11.88M | 4.19M | 16.00K | 3.97M | 4.37M |
| Total Debt | 16.14M | 19.76M | 26.83M | 59.83M | 104.52M | 60.56M |
| Total Liabilities | 51.89M | 48.89M | 57.33M | 88.43M | 140.24M | 105.18M |
| Stockholders Equity | 182.62M | 173.22M | 169.00M | 164.58M | 158.47M | 146.62M |
Cash Flow | ||||||
| Free Cash Flow | 25.92M | 28.50M | 34.01M | 46.24M | 6.41M | -8.62M |
| Operating Cash Flow | 28.75M | 31.01M | 36.05M | 48.33M | 8.52M | 1.07M |
| Investing Cash Flow | -5.13M | -4.81M | 3.93M | -1.95M | -37.83M | -9.65M |
| Financing Cash Flow | -17.65M | -18.52M | -35.80M | -50.33M | 28.90M | 9.45M |
Escalade Technical Analysis
Positive
18.63
Price Trends
18.65
Positive
18.29
Positive
15.65
Positive
Market Momentum
0.14
Positive
48.66
Neutral
51.38
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 18.63 is below the 20-day moving average (MA) of 19.03, below the 50-day MA of 18.65, and above the 200-day MA of 15.65, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.38 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 39 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $288.25M | 11.89 | 8.97% | 3.25% | 0.97% | 80.59% | |
71 Outperform | $3.76B | 24.47 | 22.54% | ― | 3.16% | -4.60% | |
65 Neutral | $487.78M | -31.70 | -3.57% | 2.87% | 17.59% | 68.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $3.33B | 102.56 | 1.43% | ― | -25.98% | 80.02% | |
54 Neutral | $158.22M | -16.92 | -5.50% | ― | -14.30% | -10604.41% | |
51 Neutral | $123.40M | -2.76 | -21.22% | 3.07% | -0.50% | 44.02% |
* Consumer Cyclical Sector Average
ESCA
Escalade
19.86
8.54
75.36%
CLAR
Clarus
3.21
0.15
5.00%
CALY
Callaway Golf
18.46
10.34
127.34%
JOUT
Johnson Outdoors
46.91
12.03
34.50%
YETI
Yeti Holdings
48.94
13.01
36.21%
AOUT
American Outdoor Brands
12.36
3.23
35.38%
Escalade Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Escalade Announces Dividend Amid Strong Q2 Performance
Positive
Jul 30, 2026
In the second quarter ended June 30, 2026, Escalade reported net sales of $57.7 million, up 6.2% year over year, with gross margin improving to 26.2% and net income jumping to $9.4 million, or $0.68 per diluted share, from $1.8 million a year earl...
Executive/Board ChangesShareholder Meetings
Escalade Shareholders Reelect Board and Back Executive Pay
Positive
May 5, 2026
On May 5, 2026, Escalade, Incorporated held its Annual Meeting of Stockholders, where investors re-elected directors Richard F. Baalmann Jr., Katherine F. Franklin, Walter P. Glazer Jr., Patrick J. Griffin, and Edward E. Williams to one-year terms...
Business Operations and StrategyDividendsFinancial Disclosures
Escalade Declares Dividend Amid Strong First-Quarter Results
Positive
Apr 30, 2026
On April 29, 2026, Escalade’s board approved a quarterly dividend of $0.1525 per share, payable to shareholders of record as of July 6 and disbursed on July 13, underscoring its continued capital return policy. The company reported first qua...
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.