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Relative to Consumer Discretionary Sector Median (N=442)
Metric
ESCA
Benchmark
P/E Ratio
15.2x
-38%
EV/EBITDA
11.9x
+143%
Price / Book
1.4x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-26.2%
$13.15Spot: $17.83
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.0%
Sector: 6.2%
Dividend Analysis audit
INCOME
4.83%
Trailing Yield
$4.83
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
73%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, ESCALADE INC (ESCA) receives a "Hold" rating with a composite score of 48.0/100, ranked #202 out of 4446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
ESCALADE INC (ESCA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ESCALADE INC Do?
Escalade, 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. ESCALADE INC (ESCA) is classified as a micro-cap stock in the Consumer Discretionary sector, specifically within the Recreation industry. The company is led by CEO Walter P. Glazer and employs approximately 590 people, headquartered in EVANSVILLE, Indiana. With a market capitalization of $249M, ESCA is one of the notable companies in the Consumer Discretionary sector.
ESCALADE INC (ESCA) Stock Rating — Hold (April 2026)
As of April 2026, ESCALADE INC receives a Hold rating with a composite score of 48.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ESCA ranks #202 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, ESCALADE INC ranks #8 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ESCA Stock Price and 52-Week Range
ESCALADE INC (ESCA) currently trades at $17.83. The stock gained $0.24 (1.4%) in the most recent trading session. The 52-week high for ESCA is $18.40, which means the stock is currently trading -3.1% from its annual peak. The 52-week low is $11.41, putting the stock 56.3% above its annual trough. Recent trading volume was 47K shares, suggesting relatively thin trading activity.
Is ESCA Overvalued or Undervalued? — Valuation Analysis
ESCALADE INC (ESCA) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 15.21x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 38%. The price-to-book ratio stands at 1.38x, versus the sector average of 1.99x. The price-to-sales ratio is 0.97x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, ESCA trades at 11.92x EV/EBITDA, versus 4.91x for the sector.
Overall, ESCA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ESCALADE INC Profitability — ROE, Margins, and Quality Score
ESCALADE INC (ESCA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.0%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 7.0% versus the sector average of 2.5%.
On a margin basis, ESCALADE INC reports gross margins of 26.1%, compared to 36.9% for the sector. The operating margin is 8.5% (sector: 3.8%). Net profit margin stands at 6.2%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 8.4% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ESCA Debt, Balance Sheet, and Financial Health
ESCALADE INC has a debt-to-equity ratio of 11.0%, compared to the Consumer Discretionary sector average of 89.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.28x, indicating strong short-term liquidity. Total debt on the balance sheet is $18M. Cash and equivalents stand at $4M.
ESCA has a beta of 0.56, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ESCALADE INC is 59/100, reflecting average volatility within the normal range for its sector.
ESCALADE INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, ESCALADE INC reported revenue of $245M and earnings per share (EPS) of $1.00. Net income for the quarter was $16M. Gross margin was 26.1%. Operating income came in at $22M.
In FY 2025, ESCALADE INC reported revenue of $240M and earnings per share (EPS) of $1.00. Net income for the quarter was $14M. Gross margin was 26.9%. Revenue grew -4.5% year-over-year compared to FY 2024. Operating income came in at $19M.
In Q3 2025, ESCALADE INC reported revenue of $68M and earnings per share (EPS) of $0.40. Net income for the quarter was $6M. Gross margin was 28.1%. Revenue grew 0.1% year-over-year compared to Q3 2024. Operating income came in at $7M.
In Q2 2025, ESCALADE INC reported revenue of $54M and earnings per share (EPS) of $0.13. Net income for the quarter was $2M. Gross margin was 24.7%. Revenue grew -13.1% year-over-year compared to Q2 2024. Operating income came in at $3M.
Over the past 8 quarters, ESCALADE INC has demonstrated a growth trajectory, with revenue expanding from $63M to $245M. Investors analyzing ESCA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ESCA Dividend Yield and Income Analysis
ESCALADE INC (ESCA) currently pays a dividend yield of 4.8%. At this yield, a $10,000 investment in ESCA stock would generate approximately $$483.00 in annual dividend income. The net margin of 6.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
ESCA Momentum and Technical Analysis Profile
ESCALADE INC (ESCA) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ESCA vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing ESCA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ESCA vs S&P 500 (SPY) comparison to assess how ESCALADE INC stacks up against the broader market across all factor dimensions.
ESCA Next Earnings Date
No upcoming earnings date has been announced for ESCALADE INC (ESCA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ESCA? — Investment Thesis Summary
ESCALADE INC presents a balanced picture with arguments on both sides. The value score of 65/100 suggests attractive pricing relative to fundamentals.
In summary, ESCALADE INC (ESCA) earns a Hold rating with a composite score of 48.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ESCA stock.
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Institutional Research Dossier
ESCALADE INC (ESCA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Escalade, Inc. (ESCA). While the company exhibits attractive valuation metrics compared to its consumer discretionary peers, particularly in P/E and EV/EBITDA, its lower gross margin and inconsistent free cash flow generation raise concerns about its long-term profitability and capital allocation efficiency. The company's diverse brand portfolio and strong market position in certain sporting goods categories provide a degree of stability, but the lack of a clear, sustainable competitive advantage limits its upside potential.
The primary takeaway is that Escalade presents a mixed picture. Its current valuation may appear appealing, but investors should carefully consider the company's ability to improve its margins, generate consistent free cash flow, and navigate the competitive landscape of the sporting goods industry. A more compelling investment case would require evidence of a widening economic moat and a more disciplined approach to capital allocation.
Business Strategy & Overview
Escalade, Inc. operates as a manufacturer, distributor, and importer of sporting goods, catering to a wide range of recreational activities. The company's revenue streams are diversified across several product categories, including archery, table tennis, basketball goals, pickleball, play systems, fitness equipment, and various indoor and outdoor games. This diversification mitigates risk associated with the cyclicality or changing consumer preferences within any single product category. Escalade employs a multi-channel distribution strategy, selling its products through sporting goods retailers, specialty dealers, online retailers, traditional department stores, and mass merchants, thereby maximizing its market reach.
The company's strategy appears to be centered on acquiring and managing a portfolio of well-known sporting goods brands. This approach allows Escalade to leverage established brand recognition and customer loyalty. However, the success of this strategy hinges on the company's ability to effectively integrate acquired brands, maintain product quality, and adapt to evolving consumer trends. The company's focus on both indoor and outdoor recreation positions it to capture demand across different seasons and consumer demographics.
Escalade's product pipeline is not explicitly detailed in the provided information, but it can be inferred that the company relies on incremental innovation and product line extensions within its existing brand portfolio. Given the competitive nature of the sporting goods industry, continuous product development and adaptation are crucial for maintaining market share and driving revenue growth. The company's ability to anticipate and respond to emerging trends, such as the increasing popularity of pickleball, will be a key determinant of its future success.
The sporting goods industry is characterized by intense competition, with numerous players vying for market share. Escalade competes with both large, established companies and smaller, niche brands. To succeed in this environment, Escalade must differentiate itself through product quality, brand recognition, distribution efficiency, and pricing strategy. The company's ability to effectively manage its supply chain and control costs will also be critical for maintaining profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
8.4%
Sector: 3.3%
+155% VS SCTR
Economic Moat Analysis
Escalade's economic moat is likely narrow. While the company possesses a portfolio of recognizable brands, particularly in specific niches like archery (Bear Archery) and table tennis (STIGA), brand recognition alone does not guarantee a sustainable competitive advantage. The sporting goods industry is characterized by relatively low switching costs, meaning that consumers can easily switch between brands based on price, features, or perceived quality. This limits Escalade's ability to command premium pricing or retain customers in the face of competition.
The company's distribution network, while extensive, is not necessarily a source of significant competitive advantage. Many of Escalade's products are sold through large retailers and online marketplaces, which provide access to a wide range of competing brands. This reduces Escalade's bargaining power and increases its reliance on these distribution channels. Furthermore, the company does not appear to possess any proprietary technology or unique manufacturing processes that would create a cost advantage over its competitors.
While Escalade's scale allows it to achieve some economies of scale in manufacturing and distribution, these advantages are unlikely to be substantial enough to create a wide economic moat. Larger competitors with greater financial resources may be able to achieve even greater economies of scale, potentially offsetting any cost advantages that Escalade possesses. The company's reliance on acquisitions to expand its brand portfolio also introduces integration risks and may not always result in a sustainable competitive advantage.
The absence of a strong network effect further weakens Escalade's competitive position. Network effects occur when the value of a product or service increases as more people use it. While some of Escalade's products, such as team sports equipment, may benefit from indirect network effects, these effects are not strong enough to create a significant barrier to entry for competitors. Overall, Escalade's competitive advantages appear to be relatively weak and easily replicable, suggesting a narrow economic moat at best.
Financial Health & Profitability
Escalade's financial health presents a mixed picture. While the company exhibits strong current ratio of 4.28, indicating ample liquidity, its free cash flow generation is not available in the provided data, making it difficult to assess its ability to fund future growth and shareholder returns. The company's debt-to-equity ratio of 11.00 is significantly lower than the sector average of 91.00, suggesting a conservative approach to leverage. However, the low debt level could also indicate a lack of investment opportunities or a reluctance to take on risk.
The company's revenue growth of 8.4% is significantly higher than the sector average of 3.2%, indicating strong demand for its products. However, its gross margin of 26.1% is significantly lower than the sector average of 36.9%, suggesting that the company may be facing pricing pressure or higher input costs. The company's operating margin of 8.5% and net margin of 6.2% are significantly higher than the sector averages of 3.8% and 2.1%, respectively, indicating efficient cost management.
Analyzing the quarterly financial history reveals some volatility in Escalade's performance. While revenue has generally been stable, net income and EPS have fluctuated from quarter to quarter. The company's gross margin has also varied, ranging from a low of 19.4% in Q1 2023 to a high of 28.1% in Q3 2025. This volatility suggests that the company's profitability is sensitive to changes in sales volume, product mix, and input costs.
The absence of free cash flow data is a significant concern. Without this information, it is difficult to assess the company's ability to generate cash from its operations and reinvest in its business. Investors should carefully examine the company's cash flow statement to determine its ability to fund future growth, acquisitions, and shareholder returns. Overall, Escalade's financial health appears to be adequate, but its lower gross margin and lack of free cash flow data warrant further scrutiny.
Valuation Assessment
Escalade's valuation appears attractive based on several key metrics. The company's P/E ratio of 17.6x is significantly lower than the sector average of 28.0x, suggesting that the stock may be undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 3.5x is significantly lower than the sector average of 5.3x, indicating that the company may be undervalued relative to its operating cash flow. These metrics suggest that investors are not fully recognizing the company's earnings potential.
However, it is important to consider the company's growth prospects and risk profile when assessing its valuation. While Escalade's revenue growth of 8.4% is higher than the sector average, its lower gross margin and inconsistent free cash flow generation raise concerns about its long-term profitability. Furthermore, the company's narrow economic moat suggests that it may face increasing competition in the future, which could limit its ability to sustain its current growth rate.
The absence of free cash flow data makes it difficult to perform a discounted cash flow (DCF) analysis, which is a more comprehensive valuation method. Without this information, it is challenging to determine the intrinsic value of the stock and assess whether it is truly undervalued. Investors should carefully examine the company's cash flow statement and consider its growth prospects and risk profile before making an investment decision.
Overall, Escalade's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, its lower gross margin, inconsistent free cash flow generation, and narrow economic moat warrant caution. The stock may be fairly valued, but it is not necessarily a bargain. Investors should carefully consider the company's growth prospects and risk profile before making an investment decision.
Risk & Uncertainty
Escalade faces several specific risks that could negatively impact its business and financial performance. One significant risk is the intense competition within the sporting goods industry. The company competes with numerous established players and smaller, niche brands, all vying for market share. Increased competition could lead to pricing pressure, reduced sales volume, and lower profitability. The company's ability to differentiate its products and maintain its market share will be crucial for mitigating this risk.
Another risk is the company's reliance on acquisitions to expand its brand portfolio. Acquisitions can be complex and challenging, and there is no guarantee that they will be successful. Integration risks, such as cultural clashes, operational inefficiencies, and unexpected costs, could negatively impact the company's financial performance. Furthermore, the company may overpay for acquisitions, which could dilute shareholder value.
Changes in consumer preferences and trends could also pose a risk to Escalade's business. The sporting goods industry is subject to evolving consumer tastes and preferences, and the company must adapt to these changes to remain competitive. Failure to anticipate and respond to emerging trends could lead to reduced sales and market share. The increasing popularity of certain sports or recreational activities could also shift demand away from the company's core product categories.
Supply chain disruptions and inflationary pressures could also negatively impact Escalade's profitability. The company relies on a global supply chain to manufacture and distribute its products, and disruptions to this supply chain could lead to increased costs and delays. Furthermore, rising input costs, such as raw materials and labor, could erode the company's margins. The company's ability to manage its supply chain and control costs will be critical for mitigating these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEscalade's low P/E and EV/EBITDA ratios compared to the sector suggest it's significantly undervalued, offering substantial upside potential as the market recognizes its true earnings power.
BULL VIEWThe company's diversified brand portfolio and strong market position in niche sporting goods categories provide a stable revenue base and mitigate risk from changing consumer preferences.
The Bear Case
BEAR VIEWEscalade's lower gross margin compared to the sector indicates pricing pressure and potential cost disadvantages, limiting its ability to generate sustainable profits.
BEAR VIEWThe absence of a wide economic moat and inconsistent free cash flow generation raise concerns about the company's long-term competitive advantage and capital allocation efficiency.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ESCA and 4,400+ other equities.
ESCALADE INC exhibits a 83% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.0%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
26.1%
Sector: 36.9%
Operating Margin
Core business profitability
8.5%
Sector: 3.8%
Net Margin
Bottom-line profitability
6.2%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $483 annually in dividends at the current trailing rate.
