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Escalade Inc. (ESCA)
NASDAQ:ESCA
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Escalade
(NASDAQ:ESCA)
Rating:67Neutral
Price Target:―
Escalade (ESCA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$209.42M
Dividend Yield3.95%
Average Volume (3M)16.40K
Price to Earnings (P/E)15.4
Beta (1Y)0.47
Revenue Growth-5.40%
EPS Growth9.57%
CountryUS
Employees450
SectorConsumer Cyclical
Sector Strength74
IndustryLeisure
Share Statistics
EPS (TTM)0.19
Shares Outstanding13,786,852
10 Day Avg. Volume13,970
30 Day Avg. Volume16,403
Financial Highlights & Ratios
PEG Ratio2.31
Price to Book (P/B)1.21
Price to Sales (P/S)0.00
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Escalade Business Overview & Revenue Model
Company DescriptionEscalade, 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 MoneyEscalade, Inc. generates revenue primarily through the design, manufacture, and sale of sporting goods and equipment. The company's revenue streams are largely driven by direct sales to retailers and distributors, as well as through e-commerce platforms where products are sold directly to consumers. Key partnerships with major retail chains and sporting goods stores enhance its market presence and distribution capabilities. Escalade's focus on innovation and quality ensures a competitive edge in the sporting goods sector, contributing to consistent sales and profitability.
Escalade Financial Statement Overview
Summary
Escalade's financial performance is stable with strong cash flow management and a solid balance sheet, although revenue growth has been negative. The company maintains profitability through cost management, reflected in a healthy EBIT margin and a robust cash flow situation.Income Statement
Escalade has demonstrated stable profitability with a gross profit margin of 24.85% and a net profit margin of 5.54% in TTM (Trailing-Twelve-Months). While revenue growth has been negative, indicating a decline in sales, the company maintains a healthy EBIT margin of 8.25% and EBITDA margin of 10.14%. Continued focus on cost management could mitigate revenue challenges.65
Positive
Balance Sheet
Escalade's balance sheet is robust with a low debt-to-equity ratio of 0.05, indicating minimal leverage. The company boasts a strong equity ratio of 75.99%, reflecting a solid capital structure. Return on equity is moderate at 8.19%, suggesting efficient use of equity, but there is room for improvement in asset utilization.72
Positive
Cash Flow
The company exhibits strong cash flow management with a free cash flow of $37.61 million in TTM, showing a significant growth compared to the previous period. The operating cash flow to net income ratio of 2.88 highlights efficient cash conversion, while the free cash flow to net income ratio of 2.72 indicates healthy cash generation relative to profits.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 249.69M | 251.51M | 263.57M | 313.76M | 313.61M | 273.65M | Gross Profit |
| 62.05M | 62.20M | 61.77M | 73.64M | 77.13M | 74.83M | EBIT |
| 20.60M | 20.00M | 17.81M | 26.32M | 31.90M | 33.03M | EBITDA |
| 25.33M | 20.00M | 23.51M | 32.38M | 36.73M | 37.05M | Net Income Common Stockholders |
| 13.83M | 12.99M | 9.83M | 17.99M | 24.41M | 25.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.21M | 4.19M | 16.00K | 3.97M | 4.37M | 3.50M | Total Assets |
| 222.07M | 226.33M | 253.00M | 298.72M | 251.80M | 220.71M | Total Debt |
| 8.26M | 26.83M | 59.83M | 104.52M | 59.74M | 31.69M | Net Debt |
| 6.04M | 22.63M | 59.82M | 100.55M | 55.37M | 28.18M | Total Liabilities |
| 53.31M | 57.33M | 88.43M | 140.24M | 105.18M | 81.55M | Stockholders Equity |
| 168.76M | 169.00M | 164.58M | 158.47M | 146.62M | 139.16M |
| Cash Flow | Free Cash Flow | ||||
| 37.61M | 34.01M | 46.24M | 6.41M | -8.76M | -2.82M | Operating Cash Flow |
| 39.83M | 36.05M | 48.33M | 8.52M | 939.00K | 2.63M | Investing Cash Flow |
| 3.69M | 3.93M | -1.95M | -37.83M | -9.65M | -21.03M | Financing Cash Flow |
| -41.59M | -35.80M | -50.33M | 28.90M | 9.58M | 16.02M |
Escalade Technical Analysis
Negative
14.68
Price Trends
15.01
Negative
14.93
Negative
14.35
Positive
Market Momentum
0.02
Positive
46.35
Neutral
27.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESCA, the sentiment is Negative. The current price of 14.68 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 15.01, and above the 200-day MA of 14.35, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 27.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESCA.
Escalade Risk Analysis
Escalade disclosed 38 risk factors in its most recent earnings report. Escalade reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The Company is currently transitioning to a new Chief Executive Officer and will soon commence the process of onboarding a new Chief Executive Officer, which may result in some disruption to the Company. Q4, 2024
2.
Excess inventory levels have previously and may in the future adversely impact the Company's operating results. Q4, 2024
3.
The Company faces risks associated with our operations in China. Q4, 2024
Escalade Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $209.42M | 15.42 | 8.29% | 3.95% | -5.40% | 9.57% | |
62 Neutral | $168.23M | ― | -3.31% | 5.78% | -2.14% | -173.54% | |
62 Neutral | $6.97B | 11.36 | 2.77% | 3.91% | 2.66% | -22.00% | |
60 Neutral | $218.04M | ― | -31.87% | ― | 0.69% | -254.98% | |
59 Neutral | $278.65M | ― | -9.70% | 4.87% | -7.28% | -924.86% | |
54 Neutral | $313.33M | ― | -31.45% | ― | ― | -79.83% | |
41 Neutral | $208.90M | ― | -14.89% | ― | -84.75% | 77.25% |
* Consumer Cyclical Sector Average
Performance Comparison
ESCA
Escalade
14.68
1.65
12.66%
CTRN
Citi Trends
25.81
3.45
15.43%
DBI
Designer Brands
3.22
-5.72
-63.98%
JOUT
Johnson Outdoors
26.13
-8.17
-23.82%
LOGC
ContextLogic
8.05
2.80
53.33%
SES
SES AI Corporation Class A
0.94
-0.31
-24.80%
Escalade Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -4.05%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable improvements in gross margins, debt reduction, and operational cash flow, but faced challenges with declining net sales and the impact of tariffs. The company is actively addressing these challenges with strategic initiatives and product launches.Q1-2025 Updates
Positive Updates
Gross Margin Improvement
Expanded gross margins by more than 160 basis points despite a 3% decline in net sales year-over-year, primarily due to lower manufacturing and logistics costs from facility consolidations and cost rationalization.
Debt Reduction
Reduced bank debt by $1.8 million and net debt by nearly $30 million over the past 12 months, driving the net leverage ratio down to 0.8 times trailing 12 months EBITDA.
Operational Cash Flow
Generated nearly $4 million in operating cash flow due to enhanced profitability and disciplined working capital management.
Innovative Product Launches
Launched initiatives to deepen consumer engagement and expand product offerings, including limited edition Brunswick Billiards cues and the GOLD CROWN VII pool table.
Negative Updates
Net Sales Decline
Net sales declined approximately 3% year-over-year, reflecting ongoing softness in discretionary spending and declining consumer sentiment.
Tariff Impact
Faced over 100 basis points negative impact from new tariffs on shipments of imported goods, particularly from China, affecting cost structure.
Inventory Management Challenges
Inventory levels rose modestly ahead of the spring selling season, although overall inventory was down year-over-year. The company faced challenges in balancing inventory amid tariff uncertainties.
Company Guidance
During the Escalade First Quarter 2025 Results Conference Call, the company provided several key financial metrics and strategic insights. Net sales experienced a year-over-year decline of approximately 3%, yet gross margins improved by more than 160 basis points, primarily due to reduced manufacturing and logistics costs. The company generated nearly $4 million in operating cash flow, reducing bank debt by $1.8 million and returning $2.1 million to shareholders via dividends while repurchasing $1.4 million in shares. This resulted in a reduction of debt by nearly $30 million over the past year, bringing the net leverage ratio down to 0.8 times trailing 12 months EBITDA, with a cost of debt at just 2.97%. For the quarter ending March 31, 2025, Escalade reported net income of $2.6 million, or $0.19 per diluted share, on net sales of $55.5 million, with earnings before interest, taxes, depreciation, and amortization increasing to $4.9 million. The company also completed the remediation of material weaknesses in its internal financial reporting controls and maintained total cash and equivalents of $2.2 million.Escalade Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Escalade Holds Annual Stockholders Meeting, Key Decisions Made
Neutral
May 7, 2025
On May 6, 2025, Escalade, Incorporated held its Annual Meeting of Stockholders, where stockholders voted on several key issues. The election of directors resulted in the re-election of Richard F. Baalmann, Jr., Katherine F. Franklin, Walter P. Glazer, Jr., Patrick J. Griffin, and Edward E. Williams to serve one-year terms. Additionally, Grant Thornton, LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year. Stockholders also approved, by non-binding vote, the compensation of named executive officers and recommended an annual frequency for future non-binding votes on executive compensation. These decisions reflect the company’s ongoing governance and strategic planning efforts, impacting its operational and financial oversight.
Spark’s Take on ESCA Stock
According to Spark, TipRanks’ AI Analyst, ESCA is a Neutral.
Escalade shows a stable financial foundation with strong cash flow and a solid balance sheet, though revenue growth remains a challenge. Technical indicators suggest limited momentum, while valuation is supported by a reasonable P/E ratio and a strong dividend yield. The earnings call highlighted both improvements in margins and debt reduction, as well as challenges such as declining sales and tariff impacts. Overall, the company is positioned well, but ongoing strategic execution will be key to future growth.
To see Spark’s full report on ESCA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.