City of London Investment (CLIG) AI Stock Analysis

• Market Cap: £167.01M
• Dividend Yield: 4.72%
• Average Volume (3M): 93.33K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.75
• Revenue Growth: 0.27%
• EPS Growth: 1.47%
• Country: UK
• Employees: 117
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.17
• Shares Outstanding: 50,679,096
• 10 Day Avg. Volume: 95,927
• 30 Day Avg. Volume: 93,329
• PEG Ratio: -1.12
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 374.00p ▲(6.86%Upside)

City of London Investment Group's overall stock score reflects a combination of undervaluation and strong financials, offset by bearish technical indicators and mixed corporate events. The P/E ratio and dividend yield are the most significant strengths, while technical analysis and lower confidence from recent events present risks.

City of London Investment Business Overview & Revenue Model

Company Description

City 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 Money

City 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	57.41M	54.87M	57.65M	61.29M	55.12M	33.26M
Gross Profit	53.48M	40.52M	49.60M	53.46M	48.48M	31.04M
EBITDA	23.50M	23.37M	23.49M	28.04M	28.08M	12.52M
Net Income	14.46M	10.74M	24.06M	22.82M	9.52M	9.31M
Balance Sheet
Total Assets	137.05M	178.97M	140.98M	150.01M	141.38M	27.59M
Cash, Cash Equivalents and Short-Term Investments	24.12M	33.74M	22.49M	22.68M	25.51M	14.59M
Total Debt	4.36M	5.73M	2.16M	2.60M	2.74M	1.96M
Total Liabilities	16.90M	25.33M	18.63M	21.24M	21.07M	8.50M
Stockholders Equity	120.15M	121.38M	122.34M	128.77M	120.13M	18.93M
Cash Flow
Free Cash Flow	18.67M	16.66M	18.59M	24.69M	22.93M	10.73M
Operating Cash Flow	18.76M	17.05M	19.07M	24.95M	23.02M	10.81M
Investing Cash Flow	2.22M	4.90M	-479.76K	-4.13M	852.72K	-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: Neutral
• Last Price: 350.00
• 50DMA: Negative
• 100DMA: Negative
• 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:CLIG, the sentiment is Neutral. The current price of 350 is above the 20-day moving average (MA) of 347.80, below the 50-day MA of 360.00, and below the 200-day MA of 356.97, indicating a neutral trend. The MACD of -3.41 indicates Negative momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CLIG.

City of London Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REC	82 Outperform	£127.07M	14.23	33.84%	7.46%	4.14%	-4.64%
BRK	79 Outperform	£268.14M	14.95	12.53%	3.50%	-9.19%	174.56%
IPX	78 Outperform	£243.64M	7.93	26.26%	1.55%	-9.06%	-24.06%
LIO	72 Outperform	£254.08M	15.46	10.79%	24.69%	-14.24%	―
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
CLIG	66 Neutral	£167.01M	11.86	11.92%	4.72%	0.27%	1.47%
MERC	61 Neutral	£145.83M	42.25	1.83%	1.09%	35.36%	-153.97%

City of London Investment Corporate Events

City of London Investment Group Announces Board and Leadership Changes

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.

City of London Investment Group Chairman Increases Stake

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.

City of London Investment Group Chairman Increases Shareholding

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.

City of London Investment Group CEO Sells Significant Shareholding

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.

City of London Investment Group Enhances Employee Incentive Holdings

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.

City of London Investment Group Announces CEO Departure and Positive Trading Update

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.

City of London Investment Group Reports Stable Funds Under Management Amid Market Fluctuations

City of London Investment Group PLC reported that its Funds under Management (FuM) remained stable at $9.9 billion as of March 31, 2025, with a slight decrease to $9.7 billion by April 15, 2025. The company experienced varied performance across its investment strategies, with some outperforming and others underperforming their benchmarks. Notably, the Listed Private Equity strategy saw an inflow of $20 million, while Emerging Markets faced outflows of $170 million due to uncertainties in US tariff policy. The company is intensifying its marketing efforts to capitalize on opportunities in international markets.

City of London Investment Group Appoints Ben Stocks as Independent Non-Executive Director

City of London Investment Group PLC has appointed Ben Stocks as an Independent Non-Executive Director, effective 7 April 2025. Stocks, who brings extensive leadership experience from his tenure at Porvair PLC, will join CLIG’s Audit and Risk, Nomination, and Remuneration Committees, enhancing the company’s strategic capabilities and supporting its growth and value enhancement efforts.