Escalade Incorporated Common Stock (ESCA)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $22 million in annual free cash flow (9.0% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.11, providing financial flexibility
• Altman Z-Score of 5.0 confirms minimal bankruptcy risk and strong solvency
• Attractive 3.4% dividend yield providing steady income returns

Concerns

• Revenue declining at 2.2% year-over-year signals potential demand weakness or market share loss

AI Analysis

Escalade Incorporated Common Stock is a micro-cap consumer cyclical company valued at $251 million. The business generates $240 million in annual revenue with a 1.5% net margin and $22 million in free cash flow. From a quality standpoint, Escalade shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 5.0 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 18.3x earnings, with trades above its Graham Number with a negative 8% margin. Growth dynamics show revenue growing at -2.2% and profit growth of 37.1%. The 3.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $22 million in annual free cash flow (9.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer