📊 ESCA Key Takeaways
Is Escalade Inc. (ESCA) a Good Investment?
Escalade demonstrates solid operational efficiency with strong free cash flow generation (28.5M, 11.9% FCF margin) and excellent liquidity metrics (4.28x current ratio) despite revenue headwinds. The company maintains robust leverage discipline (0.11x debt/equity, 22.4x interest coverage) and growing profitability (net income +5.5% YoY, EPS +6.5% YoY) despite a 4.5% revenue decline, indicating improving operational execution.
Escalade shows solid underlying financial health, with strong liquidity, low leverage, and healthy free cash flow generation supporting resilience despite softer sales. Profit conversion at the operating and net income level looks respectable, but declining revenue and an apparent gross profit data anomaly reduce confidence in earnings quality and near-term momentum.
Why Buy Escalade Inc. Stock? ESCA Key Strengths
- Exceptional free cash flow generation at $28.5M with 11.9% FCF margin relative to revenue
- Strong balance sheet with conservative leverage (0.11x debt/equity ratio) and excellent interest coverage of 22.4x
- Consistent profitability growth with net income and EPS expanding despite revenue decline, indicating operational leverage
- Superior liquidity position with 4.28x current ratio and $11.9M cash providing financial flexibility
- Strong balance sheet with low debt and high liquidity
- Robust free cash flow generation relative to revenue
- Net income and diluted EPS grew despite revenue contraction
ESCA Stock Risks: Escalade Inc. Investment Risks
- Revenue declining 4.5% YoY indicating loss of market share or demand weakness in sporting goods sector
- Critically low gross margin of only 2.5% leaves minimal cushion for cost inflation or pricing pressure
- Weak profitability margins overall (5.7% net margin, 7.8% operating margin) limit earnings power and reinvestment capacity
- Modest returns on equity (7.9%) and assets (6.2%) suggest capital is not being deployed efficiently
- Revenue declined year over year, indicating weak top-line momentum
- Gross profit and gross margin figures appear inconsistent with operating income, raising data-quality or earnings-quality concerns
- Moderate returns on equity and assets suggest limited fundamental upside without stronger growth
Key Metrics to Watch
- Revenue trend stabilization - need to confirm if 4.5% YoY decline is cyclical or structural
- Gross margin expansion - critical to sustainable profitability given dangerously low 2.5% current level
- Free cash flow sustainability - verify if 28.5M run-rate can be maintained amid revenue headwinds
- Operating leverage - monitor if company can continue growing net income while managing revenue pressure
- Revenue growth and segment demand recovery
- Gross margin consistency and cash conversion from earnings
Escalade Inc. (ESCA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.28x current ratio provides a solid financial cushion.
ESCA Profit Margin, ROE & Profitability Analysis
ESCA vs Market Sector: How Escalade Inc. Compares
How Escalade Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Escalade Inc. Stock Overvalued? ESCA Valuation Analysis 2026
Based on fundamental analysis, Escalade Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Escalade Inc. Balance Sheet: ESCA Debt, Cash & Liquidity
ESCA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Escalade Inc.'s revenue has declined by 20% over the 5-year period, indicating business contraction. The most recent EPS of $0.93 reflects profitable operations.
ESCA Revenue Growth, EPS Growth & YoY Performance
ESCA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $67.7M | $5.6M | $0.40 |
| Q2 2025 | $54.3M | $1.8M | $0.13 |
| Q1 2025 | $55.5M | $1.8M | $0.13 |
| Q3 2024 | $67.7M | $4.3M | $0.31 |
| Q2 2024 | $62.5M | $2.7M | $0.20 |
| Q1 2024 | $56.9M | -$952.0K | $-0.07 |
| Q3 2023 | $73.4M | $3.0M | $0.22 |
| Q2 2023 | $67.8M | $2.7M | $0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Escalade Inc. Dividends, Buybacks & Capital Allocation
ESCA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Escalade Inc. (CIK: 0000033488)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 7, 2026 | 4 | xslF345X06/form4-04072026_040409.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/form4-04072026_040407.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/form4-04072026_040405.xml | View → |
| Mar 27, 2026 | DEF 14A | esca20260310_def14a.htm | View → |
| Mar 12, 2026 | 4 | xslF345X05/form4-03122026_040327.xml | View → |
❓ Frequently Asked Questions about ESCA
What is the AI rating for ESCA?
Escalade Inc. (ESCA) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESCA's key strengths?
Claude: Exceptional free cash flow generation at $28.5M with 11.9% FCF margin relative to revenue. Strong balance sheet with conservative leverage (0.11x debt/equity ratio) and excellent interest coverage of 22.4x. ChatGPT: Strong balance sheet with low debt and high liquidity. Robust free cash flow generation relative to revenue.
What are the risks of investing in ESCA?
Claude: Revenue declining 4.5% YoY indicating loss of market share or demand weakness in sporting goods sector. Critically low gross margin of only 2.5% leaves minimal cushion for cost inflation or pricing pressure. ChatGPT: Revenue declined year over year, indicating weak top-line momentum. Gross profit and gross margin figures appear inconsistent with operating income, raising data-quality or earnings-quality concerns.
What is ESCA's revenue and growth?
Escalade Inc. reported revenue of $240.2M.
Does ESCA pay dividends?
Escalade Inc. pays dividends, with $8.3M distributed to shareholders in the trailing twelve months.
Where can I find ESCA SEC filings?
Official SEC filings for Escalade Inc. (CIK: 0000033488) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ESCA's EPS?
Escalade Inc. has a diluted EPS of $0.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ESCA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Escalade Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ESCA stock overvalued or undervalued?
Valuation metrics for ESCA: ROE of 7.9% (sector avg: 15%), net margin of 5.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ESCA stock in 2026?
Our dual AI analysis gives Escalade Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ESCA's free cash flow?
Escalade Inc.'s operating cash flow is $31.0M, with capital expenditures of $2.5M. FCF margin is 11.9%.
How does ESCA compare to other Market stocks?
Vs Default sector averages: Net margin 5.7% (avg: 12%), ROE 7.9% (avg: 15%), current ratio 4.28 (avg: 1.8).