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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on ESCA

Escalade, Incorporated's recent performance was negatively impacted by a decline in Q4 2024 revenue, primarily due to a 12% decrease in net sales in its core sporting goods segment. The company cited soft demand and reduced consumer spending as reasons for the decline. Additionally, the appointment of a new CEO and President, Armin Boehm, may have caused some market uncertainty, potentially contributing to the negative sentiment. The company's efforts to drive growth through strategic initiatives and investments will be closely watched in the coming quarters.

1.c. Company Highlights

2. Escalade's Q4 2025 Earnings: A Review of Performance and Outlook

Publication Date: Mar -09

📋 Highlights
  • Net Sales Decline Offset by Growth in Key Segments:: Net sales fell 2.2% to $62.6M, but archery and billiards growth from acquisitions and new products softened the impact.
  • Gross Margin Expansion:: Year-over-year gross margin improved 280 bps to 27.7%, driven by lower operational costs and Gold Tip acquisition synergies.
  • Strategic Acquisitions and Facility Expansion:: Completed AllCornhole acquisition and purchased a 110,000 sq. ft. facility to support fitness/safety categories.
  • Debt Reduction and Cash Build:: Repaid $2M in long-term debt and boosted cash reserves while maintaining stable free cash flow.

Financial Highlights

The company's net income was reported at $3.7 million. The gross margin improved significantly by 280 basis points year-over-year to 27.7%, primarily due to lower operational costs and the benefit of the Gold Tip acquisition. The company's focus on operational excellence and reshaping the cost structure has resulted in a healthier margin profile and operating leverage.

Operational Progress and Strategic Initiatives

Escalade made significant progress in repositioning itself, shifting from cost optimization to profitable market share-driven growth. The company completed the acquisition of AllCornhole and purchased a 110,000 square foot facility to support continued growth in safety and fitness categories. Additionally, the company repaid nearly $2 million of long-term debt and increased cash levels, demonstrating its commitment to disciplined capital allocation.

Outlook and Valuation

Analysts estimate the company's revenue growth at 4.3% for the next year. With a current P/E Ratio of 15.07, P/B Ratio of 1.19, and P/S Ratio of 0.86, the company's valuation appears reasonable. The Dividend Yield of 4.0% and Free Cash Flow Yield of 13.77% also indicate an attractive return profile. As Patrick Griffin noted, the company's focus is now on leveraging its leaner cost structure and stable free cash flow profile to expand leadership in key categories and deliver durable value for shareholders.

Key Metrics and Ratios

The company's ROIC is 7.14%, and ROE is 8.03%, indicating a moderate return on capital and equity. The Net Debt / EBITDA ratio is 0.35, suggesting a manageable debt burden. The EV/EBITDA ratio of 9.49x is also reasonable, considering the company's growth prospects. Overall, Escalade's operational progress, strategic initiatives, and valuation metrics suggest a stable outlook for the company.

3. NewsRoom

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Escalade Appoints Patrick J. Griffin as Chief Executive Officer and President

Mar -13

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Here's Why 'Trend' Investors Would Love Betting on Escalade (ESCA)

Mar -12

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Escalade, Incorporated (ESCA) Q4 2025 Earnings Call Transcript

Feb -27

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Escalade Reports Fourth Quarter and Full Year 2025 Results

Feb -27

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Escalade Announces Fourth Quarter and Full Year 2025 Results Conference Call Date

Feb -20

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Sporting Goods

Expected Growth: 5%

Escalade's Sporting Goods segment growth is driven by increasing demand for outdoor recreation, fitness, and team sports. The company's focus on innovative products, strategic acquisitions, and expanding e-commerce presence also contribute to growth. Additionally, partnerships with key retailers and a strong brand portfolio, including Escalade Sports and Bear Archery, further support the segment's 5% growth rate.

7. Detailed Products

Archery

Escalade, Incorporated offers a wide range of archery products, including bows, arrows, and accessories from leading brands like Bear Archery and Trophy Ridge.

Billiards

Escalade's billiards segment includes pool tables, cues, and accessories from brands like Brunswick Billiards and CueTek.

Darts

Escalade's dart products include dartboards, darts, and accessories from brands like Unicorn and Winmau.

Table Tennis

Escalade's table tennis products include tables, paddles, and accessories from brands like Butterfly and Killerspin.

Basketball

Escalade's basketball products include hoops, backboards, and accessories from brands like Goalsetter and Silverback.

8. Escalade, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Escalade, Incorporated faces moderate threat from substitutes, as luxury SUV buyers may consider alternative brands or models.

Bargaining Power Of Customers

Escalade, Incorporated has a strong brand reputation, and customers have limited bargaining power due to the luxury nature of the product.

Bargaining Power Of Suppliers

Escalade, Incorporated has a moderate level of dependence on suppliers, but has some flexibility in sourcing components and materials.

Threat Of New Entrants

The luxury SUV market has high barriers to entry, and new entrants would face significant challenges in competing with established brands like Escalade, Incorporated.

Intensity Of Rivalry

The luxury SUV market is highly competitive, with established brands like Escalade, Incorporated facing intense rivalry from other luxury brands.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.99%
Debt Cost 10.13%
Equity Weight 76.01%
Equity Cost 10.13%
WACC 10.13%
Leverage 31.56%

11. Quality Control: Escalade, Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Escalade

A-Score: 5.8/10

Value: 7.8

Growth: 5.4

Quality: 6.4

Yield: 8.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Johnson Outdoors

A-Score: 5.8/10

Value: 8.9

Growth: 3.2

Quality: 3.5

Yield: 5.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
JAKKS Pacific

A-Score: 4.5/10

Value: 6.3

Growth: 4.4

Quality: 4.6

Yield: 6.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Vista Outdoor

A-Score: 3.7/10

Value: 3.2

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
American Outdoor Brands

A-Score: 3.6/10

Value: 8.1

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Xponential Fitness

A-Score: 3.5/10

Value: 8.5

Growth: 5.7

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.16$

Current Price

17.16$

Potential

-0.00%

Expected Cash-Flows