As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Escalade, Incorporated (NASDAQ:ESCA), it is a financially-robust , dividend-paying company with a great history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on Escalade here.
Flawless balance sheet with proven track record and pays a dividend
Over the past year, ESCA has grown its earnings by 40%, with its most recent figure exceeding its annual average over the past five years. Not only did ESCA outperformed its past performance, its growth also exceeded the Leisure industry expansion, which generated a 36% earnings growth. This is an notable feat for the company. ESCA's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that ESCA manages its cash and cost levels well, which is a key determinant of the company’s health. ESCA seems to have put its debt to good use, generating operating cash levels of 0.84x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, ESCA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.3%, making it one of the best dividend companies in the market.
For Escalade, I've put together three pertinent aspects you should further research:
- 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!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.