A company whose performance is largely independent of the business cycle. Non-cyclical companies produce goods or services for which demand remains relatively stable throughout the business cycle.
Examples of non-cyclical industries include food and beverage, household and personal care products.
Non-cyclical industries can be further separated into growth or defensive industries. Growth industries have demand so strong they are largely unaffected by the stage of the business cycle. Defensive industries are those that are least affected by the stage of the business cycle, as the products are deemed necessary even in periods of business downturn. Such industries include consumer staples, and basic services such as drug stores.
Compare: Cyclical companies