📊 ESCA Key Takeaways
Is ESCA a Good Investment? Thesis Analysis
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.
Why Buy 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
ESCA Investment Risks to Consider
- 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
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
ESCA Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 4.28x current ratio provides a solid financial cushion.
ESCA Profitability Ratios
ESCA vs Default Sector
How ESCALADE INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ESCA Overvalued or Undervalued?
Based on fundamental analysis, ESCALADE INC has mixed fundamental signals relative to the Default 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.
ESCA Balance Sheet & Liquidity
ESCA 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
ESCA Quarterly 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.
ESCA Capital Allocation
ESCA SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ESCALADE INC (CIK: 0000033488)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 12, 2026 | 4 | xslF345X05/form4-03122026_040327.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/form4-03122026_040324.xml | View → |
| Mar 12, 2026 | 4 | xslF345X05/form4-03122026_040322.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/form4-03092026_040301.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/form4-03092026_040303.xml | View → |
❓ Frequently Asked Questions about ESCA
What is the AI rating for ESCA?
ESCALADE INC (ESCA) has an AI rating of BUY with 72% 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.
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.
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 March 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 Default stocks?
Vs Default sector averages: Net margin 5.7% (avg: 12%), ROE 7.9% (avg: 15%), current ratio 4.28 (avg: 1.8).