NasdaqGM:ESCA

Stock Analysis Report

Executive Summary

Escalade, Incorporated, together with its subsidiaries, manufactures and sells sporting goods in North America, Europe, and internationally.

Rewards

PE ratio (19.1x) is below the Leisure industry average (20.6x)

Risk Analysis

Unstable dividend track record

Profit margins (4.5%) are lower than last year (14%)



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Escalade's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESCA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

ESCA

4.8%

US Leisure

1.1%

US Market


1 Year Return

-1.4%

ESCA

14.5%

US Leisure

17.8%

US Market

Return vs Industry: ESCA underperformed the US Leisure industry which returned 14.5% over the past year.

Return vs Market: ESCA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ESCAIndustryMarket
7 Day0.8%4.8%1.1%
30 Day-1.9%8.7%1.4%
90 Day-0.5%-0.6%3.9%
1 Year3.1%-1.4%16.5%14.5%20.3%17.8%
3 Year-8.3%-18.7%-3.9%-8.7%44.8%35.4%
5 Year-4.5%-20.6%12.5%0.3%71.3%52.4%

Price Volatility Vs. Market

How volatile is Escalade's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Escalade undervalued compared to its fair value and its price relative to the market?

19.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESCA ($10.94) is trading above our estimate of fair value ($7.48)

Significantly Below Fair Value: ESCA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESCA is good value based on its PE Ratio (19.1x) compared to the Leisure industry average (20.6x).

PE vs Market: ESCA is poor value based on its PE Ratio (19.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESCA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESCA is good value based on its PB Ratio (1.2x) compared to the US Leisure industry average (2.6x).


Next Steps

Future Growth

How is Escalade forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Escalade has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Escalade performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESCA has high quality earnings.

Growing Profit Margin: ESCA's current net profit margins (4.5%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: ESCA's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: ESCA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ESCA had negative earnings growth (-66%) over the past year, making it difficult to compare to the Leisure industry average (3.7%).


Return on Equity

High ROE: ESCA's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Escalade's financial position?


Financial Position Analysis

Short Term Liabilities: ESCA's short term assets ($93.6M) exceed its short term liabilities ($19.6M).

Long Term Liabilities: ESCA's short term assets ($93.6M) exceed its long term liabilities ($10.3M).


Debt to Equity History and Analysis

Debt Level: ESCA's debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: ESCA's debt to equity ratio has reduced from 23.4% to 4.2% over the past 5 years.

Debt Coverage: ESCA's debt is well covered by operating cash flow (162.6%).

Interest Coverage: ESCA's interest payments on its debt are well covered by EBIT (32.5x coverage).


Balance Sheet

Inventory Level: ESCA has a high level of physical assets or inventory.

Debt Coverage by Assets: ESCA's debt is covered by short term assets (assets are 17.5x debt).


Next Steps

Dividend

What is Escalade's current dividend yield, its reliability and sustainability?

4.57%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ESCA's dividend (4.57%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ESCA's dividend (4.57%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: ESCA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ESCA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.4%), ESCA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Escalade's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Dave Fetherman (61yo)

4yrs

Tenure

US$772,723

Compensation

Mr. David L. Fetherman, also known as Dave, serves as Chief Executive Officer, President and Executive Director of Escalade Incorporated since December 7, 2015. Mr. Fetherman served as the President of Esc ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD772.72K) is below average for companies of similar size in the US market ($USD1.12M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

49yo

Average Age

Experienced Management: ESCA's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ESCA's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$37,51013 Sep 19
PAW Family Partnership LP
EntityCompany
Shares3,410
Max PriceUS$11.00
SellUS$6,49009 Sep 19
PAW Family Partnership LP
EntityCompany
Shares590
Max PriceUS$11.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dave Fetherman (61yo)

    President

    • Tenure: 4yrs
    • Compensation: US$772.72k
  • Patrick Griffin (49yo)

    VP of Corporate Development & Investor Relations and Director

    • Tenure: 10.7yrs
    • Compensation: US$373.14k
  • Stephen Wawrin (45yo)

    VP of Finance

    • Tenure: 5yrs
    • Compensation: US$442.27k

Board Members

  • Rick White (65yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$84.48k
  • Walt Glazer (60yo)

    Chairman of Board

    • Tenure: 1.6yrs
    • Compensation: US$126.48k
  • Richard Baalmann (59yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$94.48k
  • Ned Williams (58yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$96.48k
  • Dave Fetherman (61yo)

    President

    • Tenure: 4yrs
    • Compensation: US$772.72k
  • Patrick Griffin (49yo)

    VP of Corporate Development & Investor Relations and Director

    • Tenure: 10.7yrs
    • Compensation: US$373.14k

Company Information

Escalade, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Escalade, Incorporated
  • Ticker: ESCA
  • Exchange: NasdaqGM
  • Founded: 1922
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$154.633m
  • Shares outstanding: 14.27m
  • Website: https://escaladeinc.com

Number of Employees


Location

  • Escalade, Incorporated
  • 817 Maxwell Avenue
  • Evansville
  • Indiana
  • 47711
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESCANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1972
ED9DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Escalade, Incorporated, together with its subsidiaries, manufactures and sells sporting goods in North America, Europe, and internationally. The company manufactures, imports, and distributes various sport ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:36
End of Day Share Price2019/12/10 00:00
Earnings2019/10/05
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.