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mature industry

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Financial Dictionary

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.



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

Investopedia Commentary

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 Links

The Stages Of Industry Growth
Great Expectations: Forecasting Sales Growth

See also: Dividend Yield, Earnings, Emerging Industry, Growth Industry, P/E Ratio, Sunrise Industry

Also spelled: Maturing Industry

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Financial Dictionary

mature industry

An industry in which future growth is so limited that firms in it must grow by taking sales from competitors or by diversifying. The stock of firms in mature industries often has high dividend yields and sells at low price-earnings ratios. Because of their limited growth prospects, these stocks are most appropriate for conservative investors seeking high current income. The automotive, petroleum, and tobacco industries are examples of mature industries.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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