CLS Holdings (CLI) AI Stock Analysis

• Market Cap: £230.90M
• Dividend Yield: 6.63%
• Average Volume (3M): 809.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -5.32%
• EPS Growth: 72.50%
• Country: UK
• Employees: 123
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.04
• Shares Outstanding: 398,110,750
• 10 Day Avg. Volume: 349,018
• 30 Day Avg. Volume: 809,189
• PEG Ratio: 0.05
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 45.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £70.00
• Price Target Upside: 16.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 62.00p ▲(3.33% Upside)

The overall stock score is primarily influenced by financial challenges, including high leverage and persistent losses. However, positive corporate events and a stable technical outlook provide some support. The high dividend yield offers income potential, but valuation concerns due to negative earnings remain significant.

Positive Factors

Cash Generation

Despite challenges, CLS Holdings maintains positive cash flow, indicating its ability to generate cash from operations, which is crucial for sustaining business activities and funding future growth.

Asset Management

CLS Holdings' strategic emphasis on high-quality asset acquisition and management supports long-term value creation and competitive positioning in key urban markets.

Sustainability Initiatives

By prioritizing sustainability, CLS Holdings can attract environmentally conscious tenants and investors, enhancing its market appeal and supporting long-term tenant retention.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting CLS Holdings' ability to invest in growth opportunities and making it vulnerable to interest rate hikes.

Persistent Net Losses

Ongoing net losses indicate operational inefficiencies and challenge CLS Holdings' ability to achieve profitability, impacting long-term financial health and investor confidence.

Declining Margins

Declining margins reflect operational challenges and reduced profitability, which can hinder CLS Holdings' ability to reinvest in the business and maintain competitive advantage.

CLS Holdings Business Overview & Revenue Model

Company Description

CLS Holdings plc, together with its subsidiaries, engages in the investment, development, and management of commercial properties in the United Kingdom, Germany, and France. It operates in two segments, Investment Properties and Other Investments. The company also invests in a hotel; and corporate bonds and other corporate investments, as well as rents office buildings. Its asset portfolio consists of 93 properties. The company was founded in 1987 and is based in London, the United Kingdom. CLS Holdings plc is a subsidiary of The Sten and Karin Mortstedt Family & Charity Trust.

How the Company Makes Money

CLS Holdings generates revenue primarily through rental income from its diverse portfolio of commercial properties. The company leases spaces to a variety of tenants, including corporations, retailers, and industrial firms, which provides a stable and recurring revenue stream. Additionally, CLS Holdings engages in property development, where it can earn profits from selling developed properties or increasing the value of its existing assets. The company also benefits from strategic partnerships and joint ventures that may involve co-investing in property projects, further enhancing its income potential. Overall, its revenue model is supported by long-term leases, active property management, and a focus on capital appreciation.

CLS Holdings Financial Statement Overview

Summary

CLS Holdings faces financial challenges with consistent net losses affecting profitability. While the company maintains a reasonable equity ratio and positive cash flows, high leverage and persistent negative net income pose significant risks. Stabilizing operations and improving profitability are crucial for future financial health.

Income Statement

The company's income statement shows a challenging financial position with persistent losses. The Net Profit Margin has been negative for several years, indicating ongoing unprofitability. Revenue growth is minimal, with TTM revenue increasing slightly by 2.15% from the previous year. The EBIT and EBITDA margins have significantly declined, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a stable asset base but highlights concerns with high leverage. The Debt-to-Equity ratio is over 1.28, indicating significant leverage. However, the equity ratio remains above 40%, suggesting reasonable equity financing. ROE is negative due to net losses, indicating inefficient use of equity.

Cash Flow

Cash flow analysis shows some strengths, with positive operating cash flow and free cash flow. However, free cash flow has shown volatility, with recent growth of 51.79% compared to the previous year. The Operating Cash Flow to Net Income ratio is positive, indicating cash generation despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.00M	151.90M	148.70M	139.70M	139.80M	139.40M
Gross Profit	108.40M	95.90M	113.00M	107.80M	108.00M	109.80M
EBITDA	72.70M	-55.80M	80.00M	76.50M	79.60M	76.90M
Net Income	-56.90M	-93.60M	-249.80M	-81.90M	119.50M	77.40M
Balance Sheet
Total Assets	1.83B	1.93B	2.16B	2.50B	2.54B	2.46B
Cash, Cash Equivalents and Short-Term Investments	63.90M	9.00M	70.60M	113.90M	167.40M	235.70M
Total Debt	926.40M	1.00B	1.07B	1.11B	1.03B	970.70M
Total Liabilities	1.06B	1.15B	1.23B	1.28B	1.21B	1.19B
Stockholders Equity	765.40M	784.20M	929.20M	1.22B	1.33B	1.27B
Cash Flow
Free Cash Flow	15.50M	6.80M	44.80M	-15.40M	6.90M	24.30M
Operating Cash Flow	15.60M	29.50M	45.90M	43.00M	44.20M	44.30M
Investing Cash Flow	114.80M	41.10M	-32.30M	-81.30M	-165.50M	-92.40M
Financing Cash Flow	-135.70M	-79.80M	-56.20M	-14.60M	57.30M	21.60M

CLS Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CLI, the sentiment is Positive. The current price of 60 is above the 20-day moving average (MA) of 58.80, above the 50-day MA of 59.02, and below the 200-day MA of 61.14, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 66.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CLI.

CLS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SREI	68 Neutral	£264.12M	―	―	6.69%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ASLI	60 Neutral	£108.40M	15.65	2.31%	65.30%	0.54%	―
CLI	58 Neutral	£230.90M	-4.19	-7.10%	6.63%	-5.32%	72.50%
RGL	54 Neutral	£163.71M	-7.99	-6.74%	9.70%	-5.48%	89.60%
OIT	48 Neutral	―	-96.53	-0.94%	―	-98.40%	-113.47%

CLS Holdings Corporate Events

CLS Holdings Strengthens Operations Amid Economic Challenges

CLS Holdings plc has made significant progress in its strategic priorities, including improving occupancy rates, executing sales to reduce loan-to-value ratios, and successfully refinancing debts due in 2025. Despite economic and political challenges impacting leasing activities, the company has maintained stable transaction levels and rental growth. CLS has completed over half of its £400 million sales program, with further disposals expected soon, and has strengthened its balance sheet by refinancing £373 million of debt. The company remains focused on sustainability, achieving notable awards for its efforts, and is undergoing leadership changes with new appointments to its board.

CLS Holdings Executives Acquire Shares Under Incentive Plan

CLS Holdings plc has announced that its CEO, Fredrik Widlund, and CFO, Andrew Kirkman, have acquired ordinary shares under the company’s Share Incentive Plan. The shares were purchased at 60.2 pence each, with both executives receiving one matching share for each partnership share purchased. This transaction is part of the company’s ongoing efforts to align management interests with those of shareholders, potentially impacting the company’s market perception positively.

CLS Holdings Appoints New CFO to Drive Strategic Growth

CLS Holdings plc has announced the appointment of Harry Stokes as the new Chief Financial Officer, effective from January 5, 2026. Harry Stokes, with extensive experience in financial services and real estate, is expected to contribute significantly to the company’s strategic goals as it navigates a new phase in the property cycle. The outgoing CFO, Andrew Kirkman, will ensure a smooth transition before his departure at the end of January 2026.

CLS Holdings Secures Major Lease at Gotic Haus, Dortmund

CLS Holdings has secured an 8-year lease agreement for 14,700 sqm at Gotic Haus in Dortmund with a government department, significantly boosting the building’s occupancy to over 80%. The lease, which is index-linked to the German CPI, is expected to enhance the property’s value and increase the total rental income to over €4.0 million annually, reflecting the company’s strategic asset management and commitment to sustainable office spaces.

CLS Holdings Executives Acquire Shares Under Incentive Plan

CLS Holdings plc, a company involved in real estate investment and management, announced that its CEO, Fredrik Widlund, and CFO, Andrew Kirkman, acquired ordinary shares under the company’s Share Incentive Plan. The transaction, conducted on 8 October 2025, involved the purchase of Partnership Shares at 62.1 pence each, with each share matched by the company. This move reflects the company’s commitment to aligning the interests of its executives with those of its shareholders, potentially strengthening stakeholder confidence.

CLS Holdings Executives Acquire Shares Under Incentive Plan

CLS Holdings plc announced that its CEO, Fredrik Widlund, and CFO, Andrew Kirkman, acquired ordinary shares under the company’s Share Incentive Plan. This transaction, which took place on 8 September 2025, involved the purchase of Partnership Shares and the awarding of Matching Shares, reflecting the company’s commitment to aligning management interests with shareholder value.