As indicated by the typical company data, the demand for ORV has been growing fast in the past two years probably as a result of increased income of consumers.

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend

1. It seems that the demand for off- road vehicles has been growing fast in the past two years.

2. It seems that the growth in demand for ORV products has expanded from relatively lower price categories to higher price categories.

Causes behind the trend

1. Generally, the demand for recreational vehicles has been related to consumers’ income and other macro-economy factors.

Industry Future

1. Companies may find that demand will continue to be strong but the growth in demand may slow down.

General Financial Performance of Companies In the Sector

It seems that the demand for off-road vehicles by companies in this sector has been picking up in the past two years as indicated by increasing sales volume of related products. As demand increased fast, it seems to be shifting from relatively cheaper product to more expensive products as indicated by the increased average selling price.

The typical gross margin is about 25% and with a SG&A as percentage of sales of 11% the operating margin is about 10% in 2018. The typical enterprise price/sales ratio is 6.

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