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Escalade, Incorporated (ESCA)

Company Dividend Discount ModelIndustry: LeisureSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$15.43 - $30.68$21.40
Multi-Stage$14.44 - $15.75$15.08
Blended Fair Value$18.24
Current Price$12.57
Upside45.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.89%4.61%0.590.440.580.550.530.520.520.470.450.43
YoY Growth--34.40%-24.21%5.99%3.04%3.64%-0.15%9.20%5.17%3.46%14.70%
Dividend Yield--3.89%3.27%4.00%3.87%2.40%8.59%4.48%3.41%3.53%3.45%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)12.70
(-) Cash Dividends Paid (M)8.29
(=) Cash Retained (M)4.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.541.590.95
Cash Retained (M)4.414.414.41
(-) Cash Required (M)-2.54-1.59-0.95
(=) Excess Retained (M)1.872.823.46
(/) Shares Outstanding (M)13.9713.9713.97
(=) Excess Retained per Share0.130.200.25
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.130.200.25
(=) Adjusted Dividend0.730.800.84
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.19%5.19%6.19%
Fair Value$15.43$21.40$30.68
Upside / Downside22.75%70.21%144.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)12.7013.3614.0514.7815.5516.3516.84
Payout Ratio65.28%70.22%75.17%80.11%85.06%90.00%92.50%
Projected Dividends (M)8.299.3810.5611.8413.2214.7215.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.19%5.19%6.19%
Year 1 PV (M)8.528.608.68
Year 2 PV (M)8.708.879.04
Year 3 PV (M)8.869.129.38
Year 4 PV (M)8.989.339.69
Year 5 PV (M)9.089.529.98
PV of Terminal Value (M)157.59165.30173.31
Equity Value (M)201.73210.74220.09
Shares Outstanding (M)13.9713.9713.97
Fair Value$14.44$15.08$15.75
Upside / Downside14.88%20.01%25.33%

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