Our analysis is based on comparing Escalade, Inc. with the following peers – Johnson Outdoors Inc. Class A, Callaway Golf Company, Nautilus Inc and Clarus Corporation (JOUT-US, ELY-US, NLS-US and CLAR-US).
Escalade, Inc.’s dividend yield is 4.25 percent and its dividend payout is 64.08 percent. This compares to a peer median dividend yield of 0.60 percent and a payout level of 6.27 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), ESCA-US paid a low quality dividend, which represents a yield of 3.40% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality and 4 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), ESCA-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.86x), investing cash flow (coverage of -0.58x), issuance cash flow (coverage of -1.69x) and twelve-month prior cash (coverage of 0.66x), for a total dividend coverage of 1.25x.
ESCA-US’s issuance cash flow includes outflows from net debt repayment (coverage of -1.75x).
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||7.2||2.84||2.61||3.25||3.33||4.25|
|Dividend Payout (%)||-83.78||47.22||45.24||52.75||54.81||64.08|
A complete list of metrics and analysis is available on the company page.
Escalade, Inc. engages in the provision of manufacturing and distribution of sporting goods. The company offers sports products in the field of archery, table tennis, basketball, fitness, game tables, billiard, dart and other outdoor sports. It distributes its products through retailers, specialty dealers, key on-line retailers, traditional department stores and mass merchants. The company’s brands include goalrilla, goalstter, goaliath, silverback, hoopstar, woodplay, bear, prince, unicorn, winmau, nodor, arachnid and triumph. Escalade was founded in 1922 and is headquartered in Evansville, IN.
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