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I’ve been keeping an eye on Escalade, Incorporated (NASDAQ:ESCA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ESCA has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Escalade here.
Flawless balance sheet established dividend payer
ESCA delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ESCA also outperformed its industry, which delivered a growth of 20%. This is an notable feat for the company. ESCA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ESCA manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at ESCA’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. ESCA has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Income investors would also be happy to know that ESCA is one of the highest dividend payers in the market, with current dividend yield standing at 4.5%. ESCA has also been regularly increasing its dividend payments to shareholders over the past decade.
For Escalade, I’ve compiled three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ESCA’s future growth? Take a look at our free research report of analyst consensus for ESCA’s outlook.
- Valuation: What is ESCA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ESCA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ESCA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.