Do not quit Escalade quite yet!

ESCA
 Stock
  

USD 10.73  0.24  2.19%   

Whilst many millenniums are getting more into consumer cyclical space, it makes sense to go over Escalade. We are going to cover the possibilities of making Escalade into your portfolio. Is the firm current valuation justified? We will cover Escalade valuation to give you a better outlook on taking a position in the stock.
Published over three months ago
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Escalade currently holds 61.5 M in liabilities with Debt to Equity (D/E) ratio of 0.43, which is about average as compared to similar companies.
The firm shows a Beta (market volatility) of 1.3937, which means a somewhat significant risk relative to the market. Let's try to break down what Escalade's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Escalade will likely underperform. Even though it is essential to pay attention to Escalade historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Escalade exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Escalade has an expected return of -0.15%. Please be advised to confirm Escalade jensen alpha, maximum drawdown, and the relationship between the coefficient of variation and sortino ratio to decide if Escalade performance from the past will be repeated at some point in the near future.
We determine the current worth of Escalade using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Escalade based exclusively on its fundamental and basic technical indicators. By analyzing Escalade's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Escalade's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Escalade. We calculate exposure to Escalade's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Escalade's related companies.

Escalade Investment Alerts

Escalade investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Escalade performance across your portfolios.Please check all investment alerts for Escalade

Escalade Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Escalade value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Escalade competition to find correlations between indicators driving the intrinsic value of Escalade.

How does Escalade utilize its cash?

To perform a cash flow analysis of Escalade, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Escalade is receiving and how much cash it distributes out in a given period. The Escalade cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Exercise or conversion by Patrick Griffin of 1031 shares of Escalade subject to Rule 16b-3

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 exercise of common stock by Patrick Griffin, VICE PRESIDENT, on 23rd of August 2022. This event was filed by Escalade Inc with SEC on 2022-03-04. Statement of changes in beneficial ownership - SEC Form 4. Patrick Griffin currently serves as vice president - corporate development, investor relations, director of Escalade [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?

Escalade price slip over the last few months could raise concerns from investors as the firm is trading at a share price of 13.36 on 138,835 in volume. The company executives were not very successful in positioning the firm resources to exploit market volatility in March. However, diversifying your holdings with Escalade or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.41. The current volatility is consistent with the ongoing market swings in March 2022 as well as with Escalade unsystematic, company-specific events.

Margins Breakdown

Escalade profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Escalade itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Escalade profit margins.
Operating Margin7.12
EBITDA Margin0.13
Gross Margin0.25
Profit Margin0.0719


Escalade Revenue Per Employee is increasing over the last 7 years. The previous year's value of Escalade Revenue Per Employee was 284,892. Further, Escalade Average Assets is decreasing over the last 4 years.

Our take on today Escalade rise

Skewness just dropped to -0.24, may suggest upcoming price decrease. Escalade exhibits very low volatility with skewness of -0.24 and kurtosis of 1.9. However, we advise investors to further study Escalade technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Escalade's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Escalade's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Escalade Implied Volatility

Escalade's implied volatility exposes the market's sentiment of Escalade stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Escalade's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Escalade stock will not fluctuate a lot when Escalade's options are near their expiration.

Our Conclusion on Escalade

Whereas many other companies under the leisure industry are still a bit expensive, Escalade may offer a potential longer-term growth to investors. To summarize, as of the 14th of April 2022, our analysis shows that Escalade responds to the market. The company is undervalued and projects low odds of financial turmoil for the next 2 years. Our present 90 days buy-or-sell advice on the company is Strong Hold.

Editorial Staff

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 Raphi 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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