📊 ESCA Key Takeaways
Is Escalade Inc. (ESCA) a Good Investment?
Escalade exhibits fortress-like financial health with zero debt, strong liquidity (3.06x current ratio), and expanding profitability margins that drove 5.5% net income growth despite 4.5% revenue decline. However, persistently low returns on capital (ROE 2.5%, ROA 1.9%) combined with declining top-line revenue suggest structural headwinds that limit upside potential in a competitive sporting goods market.
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
- Zero long-term debt with debt-to-equity of 0.00x and strong balance sheet (77% equity-to-assets)
- Exceptional liquidity with 3.06x current ratio and 1.41x quick ratio providing significant financial flexibility
- Operating leverage demonstrated by 5.5% YoY net income growth despite 4.5% revenue decline, showing margin expansion and operational efficiency
- 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
- Declining revenue trend of 4.5% YoY indicates loss of competitive position or market share contraction in core markets
- Severely low returns on capital (ROE 2.5%, ROA 1.9%) reveal inefficient asset utilization relative to $227.6M asset base
- Thin operating margins of 10.5% and gross margins of 10.8% reflect intense competition and low pricing power in sporting goods sector
- 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 growth stabilization or return to positive growth trajectory
- Return on equity (ROE) improvement trajectory and asset turnover efficiency
- Free cash flow sustainability and capital allocation decisions given zero debt capacity for strategic investments
- 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 3.06x 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 |
|---|---|---|---|
| Q1 2026 | $55.5M | $2.6M | $0.19 |
| 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 |
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 |
|---|---|---|---|
| May 8, 2026 | 4 | xslF345X06/form4-05082026_040512.xml | View → |
| May 8, 2026 | 4 | xslF345X06/form4-05082026_040510.xml | View → |
| May 8, 2026 | 4 | xslF345X06/form4-05082026_040509.xml | View → |
| May 8, 2026 | 4 | xslF345X06/form4-05082026_040507.xml | View → |
| May 5, 2026 | 8-K | esca20260505_8k.htm | View → |
❓ Frequently Asked Questions about ESCA
What is the AI rating for ESCA?
Escalade Inc. (ESCA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESCA's key strengths?
Claude: Zero long-term debt with debt-to-equity of 0.00x and strong balance sheet (77% equity-to-assets). Exceptional liquidity with 3.06x current ratio and 1.41x quick ratio providing significant financial flexibility. 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: Declining revenue trend of 4.5% YoY indicates loss of competitive position or market share contraction in core markets. Severely low returns on capital (ROE 2.5%, ROA 1.9%) reveal inefficient asset utilization relative to $227.6M asset base. 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 $55.8M.
Does ESCA pay dividends?
Escalade Inc. pays dividends, with $2.1M 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 $0.32.
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 May 2026, Escalade Inc. has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ESCA stock overvalued or undervalued?
Valuation metrics for ESCA: ROE of 2.5% (sector avg: 15%), net margin of 7.9% (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 HOLD 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 $6.1M, with capital expenditures of $848.0K. FCF margin is 9.5%.
How does ESCA compare to other Market stocks?
Vs Default sector averages: Net margin 7.9% (avg: 12%), ROE 2.5% (avg: 15%), current ratio 3.06 (avg: 1.8).