As indicated by typical sales data, the demand for products of companies in this sector seems to be weak and declining due to decreasing demand from manufacturers of consumer electronic devices.

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

Current and Trend

1. It seems that the demand for carrying cases products from manufacturers of electronic devices has been quickly declining

2. The decrease in demand seems to have primarily come from Asian and European market.

Causes behind the trend

Industry Future

General Financial Performance of Companies In the Sector

It seems that, based on the typical company data, the demand for carrying cases products from manufacturers of electronic devices has been quickly declining as indicated by its continuingly decreasing sales of carrying cases. The decrease in demand seems to have primarily come from Asian and European market.

Sales decline has resulted in increasing pressure on margins according to the typical company’s data. The typical companies’ gross margin is down by about 400 basis points to about 16% in 2017.  With largely improved SG&A as percentage of sales (cost saving from personnel spending and compensations), the typical operating margin went up above 1% in 2017.

The typical average stock price/cash flow ratio is about 26.

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