ESCA Escalade stock Story

ESCA -  USA Stock  

USD 22.65  0.13  0.58%

Escalade Incorporated is scheduled to announce its earnings today. Escalade Incorporated Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 156.63 Million. The current year Average Equity is expected to grow to about 108.1 M, whereas Net Income Per Employee is forecasted to decline to about 19.6 K. While some millenniums are indifferent towards consumer cyclical space, it makes sense to go over Escalade Incorporated as a unique investment alternative.
Published over six months ago
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How much will Escalade Incorporated owe in December?
The company currently holds 1.28 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the firm is not taking enough advantage from borrowing. Escalade Incorporated has a current ratio of 2.52, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of 9.52 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 13.68 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.14.
Escalade financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Escalade, including all of Escalade's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Escalade assets, the company is considered highly leveraged. Understanding the composition and structure of overall Escalade debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding ESCA Escalade Total Debt

Escalade liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Escalade has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Escalade balance sheet include debt obligations and money owed to different Escalade vendors, workers, and loan providers. Below is the chart of ESCA Escalade main long-term debt accounts currently reported on its balance sheet.
You can use Escalade financial leverage analysis tool to get a better grip on understanding its financial position

How important is Escalade's Liquidity

Escalade financial leverage refers to using borrowed capital as a funding source to finance Escalade ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Escalade financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Escalade's total debt and its cash.

Escalade exotic insider transaction detected

Legal trades by Escalade insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Escalade insider trading alert for general transaction of common stock by Glazer Walter P Jr, Interim CEO, on 19th of May 2021. This event was filed by Escalade Inc with SEC on 2021-05-19. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Escalade valued fairly by the market?

The current rise in Escalade Incorporated short term price appreciation could raise concerns from investors as the firm it trading at a share price of 21.86 on slow start in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.8. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Escalade Incorporated partners.

Liabilities Breakdown

Tax Liabilities
21.7 M
Current Liabilities
33 M
Long-Term Liabilities
Total Liabilities43.02 Million
Current Liabilities21.71 Million
Long-Term Liabilities33.05 Million
Tax Liabilities5.56 Million

Will Escalade investors exit after the slip?

Current treynor ratio is at 0.72. Escalade Incorporated shows above-average downside volatility for the selected time horizon. We advise investors to inspect Escalade Incorporated further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Escalade Incorporated future alpha.

Our Final Take On Escalade Incorporated

Whereas few other entities within the leisure industry are still a little expensive, even after the recent corrections, Escalade Incorporated may offer a potential longer-term growth to investors. Taking everything into account, as of the 8th of November 2020, our current 30 days buy vs. sell advice on the company is Strong Hold. We believe Escalade Incorporated is undervalued with close to average odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Escalade. Please refer to our Terms of Use for any information regarding our disclosure principles.

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