Mature Industry

AAA

DEFINITION of 'Mature Industry'

An industry which has passed both the emerging and the growth phases of industry growth. Earnings and sales grow slower in mature industries than in growth and emerging industries.

Mature Industry



As can be seen above, the third phase is the mature industry phase.

INVESTOPEDIA EXPLAINS 'Mature Industry'

A mature industry may be at its peak or just past it. While earnings may be stable, growth prospects are few and far between.

Mature industries are characterized by low price to earnings ratios (P/E) and high dividend yields.

RELATED TERMS
  1. Earnings

    The amount of profit that a company produces during a specific ...
  2. Sunrise Industry

    A colloquial term for a sector or business that is in its infancy, ...
  3. Price-Earnings Ratio - P/E Ratio

    A valuation ratio of a company's current share price compared ...
  4. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends ...
  5. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
  6. Emerging Industry

    A group of companies in a line of business formed around a new ...
Related Articles
  1. Great Expectations: Forecasting Sales ...
    Fundamental Analysis

    Great Expectations: Forecasting Sales ...

  2. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  3. What's the difference between old- and ...
    Investing

    What's the difference between old- and ...

  4. Stocks with high P/E ratios can be overpriced. ...
    Investing

    Stocks with high P/E ratios can be overpriced. ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center