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City of London Investment Group PLC (GB:CLIG)
LSE:CLIG
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City of London Investment (CLIG) AI Stock Analysis

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GB:CLIG

City of London Investment

(LSE:CLIG)

Rating:78Outperform
Price Target:
408.00p
▲(13.97%Upside)
The overall stock score reflects strong valuation and technical trends, supported by solid financial performance. While recent corporate events suggest positive strategic direction, the CEO's share sale introduces some uncertainty. Nonetheless, the company's robust dividend yield and attractive P/E ratio enhance its investment proposition.

City of London Investment (CLIG) vs. iShares MSCI United Kingdom ETF (EWC)

City of London Investment Business Overview & Revenue Model

Company DescriptionCity of London Investment Group PLC is a publically owned investment manager. The firm provides client focused equity portfolios. It invests in public equity markets across the globe. The firm invests in small cap companies in emerging markets to create its portfolios. It uses combination of macroeconomic, qualitative, and top down company analysis to make its investments. The firm uses in house research to make its investments. It benchmarks the performance of its portfolios with S&P EM Frontier Super Comp., MSCI Emerging Markets Index, HSBC Global Mining Index, and MSCI ACWI ex US Index. City of London Investment Group PLC was founded in 1991 and is based in London, United Kingdom with additional offices in Dubai, United Arab Emirates, Singapore, Coatesville, Pennsylvania, Bellevue, Washington.
How the Company Makes MoneyCity of London Investment Group generates revenue primarily through management fees charged on assets under management (AUM). These fees are typically a percentage of the total AUM and vary based on the investment products and services offered. Additionally, the company may earn performance fees, which are contingent on achieving specified investment benchmarks or returns. CLIG's revenue is significantly influenced by market conditions, investor inflows and outflows, and the performance of the emerging markets in which it invests. The firm relies on its investment acumen and strong client relationships to sustain and grow its earnings.

City of London Investment Financial Statement Overview

Summary
City of London Investment Group maintains a solid financial foundation with strong profitability and balance sheet stability. However, recent declines in revenue and cash flow growth present potential challenges that may affect future performance.
Income Statement
75
Positive
The company demonstrated healthy EBIT and EBITDA margins, though there was a noticeable decline in revenue and net income over the past year. While profitability remains robust, the declining revenue growth rate presents a potential risk.
Balance Sheet
80
Positive
The company's balance sheet is strong, with a low debt-to-equity ratio and a high equity ratio, indicating stability. Return on equity remains solid, reflecting efficient use of shareholders' funds.
Cash Flow
70
Positive
Cash flow analysis shows a decrease in operating cash flow, yet the company maintains a positive free cash flow. The operating cash flow to net income ratio suggests good cash generation, but declining free cash flow growth is a concern.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue57.41M54.87M57.65M61.29M55.12M33.26M
Gross Profit53.48M40.52M49.60M53.46M48.48M31.04M
EBITDA23.50M23.37M23.49M28.04M28.08M12.52M
Net Income14.46M10.74M24.06M22.82M9.52M9.31M
Balance Sheet
Total Assets137.05M178.97M140.98M150.01M141.38M27.59M
Cash, Cash Equivalents and Short-Term Investments24.12M33.74M22.49M22.68M25.51M14.59M
Total Debt4.36M5.73M2.16M2.60M2.74M1.96M
Total Liabilities16.90M25.33M18.63M21.24M21.07M8.50M
Stockholders Equity120.15M121.38M122.34M128.77M120.13M18.93M
Cash Flow
Free Cash Flow18.67M16.66M18.59M24.69M22.93M10.73M
Operating Cash Flow18.76M17.05M19.07M24.95M23.02M10.81M
Investing Cash Flow2.22M4.90M-479.76K-4.13M852.72K-1.20M
Financing Cash Flow-17.13M-16.83M-18.99M-24.24M-12.87M-8.98M

City of London Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price358.00
Price Trends
50DMA
355.68
Positive
100DMA
351.95
Positive
200DMA
357.58
Positive
Market Momentum
MACD
2.58
Negative
RSI
58.62
Neutral
STOCH
73.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CLIG, the sentiment is Positive. The current price of 358 is above the 20-day moving average (MA) of 353.05, above the 50-day MA of 355.68, and above the 200-day MA of 357.58, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 73.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CLIG.

City of London Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£262.98M8.5826.26%1302.66%-9.06%-24.06%
78
Outperform
£173.31M12.3111.92%683.01%0.27%1.47%
77
Outperform
£280.93M15.6912.53%438.89%-9.19%174.56%
76
Outperform
£228.68M13.9110.79%1975.31%-14.24%
76
Outperform
£121.00M13.5533.84%733.44%-7.46%-2.48%
63
Neutral
AU$10.07B9.1111.83%4.85%33.36%41.81%
61
Neutral
£140.51M40.631.83%113.85%35.36%-153.97%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CLIG
City of London Investment
363.00
15.74
4.53%
GB:BRK
Brooks Macdonald
1,800.00
-135.06
-6.98%
GB:IPX
Impax Asset Management
209.50
-143.64
-40.68%
GB:LIO
Liontrust Asset Management
370.00
-161.88
-30.44%
GB:MERC
Mercia Asset Management
32.50
-0.02
-0.06%
GB:REC
Record plc
63.40
1.58
2.56%

City of London Investment Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
City of London Investment Group Reports Strong Performance and Leadership Changes
Positive
Jul 24, 2025

City of London Investment Group PLC reported a 5.6% increase in Funds under Management, reaching $10.8 billion by June 2025. The company benefited from improved corporate governance and market volatility, leading to strong performance across its strategies, particularly in non-US equities. Despite net outflows of $974 million, the group saw new mandates and inflows in several strategies. Leadership changes include the appointment of Mike Edmonds as Chief Investment Officer, while the company maintains its commitment to delivering strong risk-adjusted returns and shareholder engagement.

Executive/Board Changes
City of London Investment Group Announces Board and Leadership Changes
Neutral
Jul 2, 2025

City of London Investment Group PLC has announced changes in its board and committee structure, with Ben Stocks taking over as Chair of the Nomination Committee from Rian Dartnell, who remains Chair of the Board. Additionally, Tom Griffith has stepped down from his role as Chief Executive Officer but will continue as a Senior Advisor until September 2025, as part of a planned succession process.

Other
City of London Investment Group Chairman Increases Stake
Positive
Jul 1, 2025

City of London Investment Group PLC announced that Rian Dartnell, the Chairman and a person discharging managerial responsibilities, has purchased 3,000 ordinary shares at £3.46 each. This transaction increases Dartnell’s total beneficial interest to 63,000 shares, representing approximately 0.1% of the company’s issued share capital, highlighting a potential vote of confidence in the company’s future by its leadership.

Other
City of London Investment Group Chairman Increases Shareholding
Positive
Jun 17, 2025

City of London Investment Group PLC announced that Rian Dartnell, the Chairman and a person with managerial responsibilities, has purchased 10,000 shares of the company at a price of £3.466433 per share. This transaction increases Mr. Dartnell’s total holding to 60,000 shares, representing approximately 0.1% of the company’s issued share capital, and reflects a vote of confidence in the company’s prospects.

Other
City of London Investment Group CEO Sells Significant Shareholding
Negative
Jun 13, 2025

City of London Investment Group PLC announced that Tom Griffith, the CEO and a person discharging managerial responsibilities, has sold 400,000 shares at a price of £3.41206 per share. This transaction reduces Griffith’s beneficial interest to 157,147 shares, approximately 0.3% of the company’s issued share capital, potentially impacting perceptions of the company’s market position and stakeholder confidence.

Business Operations and Strategy
City of London Investment Group Enhances Employee Incentive Holdings
Positive
Jun 13, 2025

City of London Investment Group PLC announced that its Employee Benefit Trust has purchased 400,000 ordinary shares, increasing its total holdings to 1,750,055 shares, which represents 3.5% of the company’s issued capital. This move signifies a commitment to employee incentives and could potentially enhance employee engagement and retention, impacting the company’s operational stability and market confidence.

Executive/Board ChangesFinancial Disclosures
City of London Investment Group Announces CEO Departure and Positive Trading Update
Positive
Jun 10, 2025

City of London Investment Group PLC announced the departure of Tom Griffith as CEO by July 2025, with a planned succession process in place to ensure a smooth transition. The company also reconfirmed its positive fourth-quarter trading performance and anticipates providing further details in its year-end update on 24 July 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025