City of London Investment (CLIG) AI Stock Analysis

• Market Cap: £188.80M
• Dividend Yield: 8.15%
• Average Volume (3M): 56.95K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.53
• Revenue Growth: 1.29%
• EPS Growth: 11.17%
• Country: UK
• Employees: 117
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.16
• Shares Outstanding: 50,679,096
• 10 Day Avg. Volume: 35,880
• 30 Day Avg. Volume: 56,949
• PEG Ratio: 0.10
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 6.80
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 454.00p ▲(21.72% Upside)

City of London Investment's strong financial performance and positive corporate events are the primary drivers of its score. The stock's reasonable valuation and high dividend yield add to its attractiveness. However, technical indicators suggest caution due to bearish trends and weak momentum.

Positive Factors

Strong revenue growth

Sustained 27% revenue growth indicates durable demand for the firm's strategies and rising fee-bearing AUM. For an asset manager, consistent top-line expansion supports operating leverage, dividend coverage and reinvestment capacity, strengthening long-term cash generation.

Robust cash generation

Very strong free cash flow growth and high cash conversion signal that reported profits translate into liquid resources. This underpins sustainable dividends, potential buybacks or strategic hires, and provides resilience through market cycles for an asset management business.

Conservative leverage and strong equity base

Extremely low leverage and a solid equity ratio reduce solvency and refinancing risk, giving management flexibility to support client mandates, pursue selective investment or endure drawdowns. A healthy ROE shows capital is being applied effectively over time.

Negative Factors

Rising operational costs denting margins

A decline in EBIT margin driven by higher operating costs can erode the firm’s ability to convert fee revenue into net earnings. If cost pressures persist, operating leverage advantage weakens, reducing retained earnings available for dividends and strategic investment.

Increase in total debt requires monitoring

Although current leverage is low, a rising debt trend reduces future flexibility and raises funding costs risk if it continues. For an asset manager reliant on steady cash flow, growing debt could constrain capital allocation and heighten vulnerability in adverse markets.

Concentrated business model focused on closed-end funds

Heavy reliance on closed-end fund strategies concentrates revenue and client demand around AUM-sensitive products. Structural shifts in investor preferences, regulatory changes or prolonged discount widening could materially affect fee income and client retention over the medium term.

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

CLIG generates revenue primarily through management fees charged on the assets under management (AUM) of its various investment funds. These fees are typically a percentage of the AUM and can vary based on the fund type and investment strategy. Additionally, the company may earn performance fees based on the investment returns achieved above certain benchmarks. Key revenue streams include fees from institutional investors, such as pension funds, endowments, and family offices, as well as retail investors through mutual funds. CLIG also engages in strategic partnerships with other financial institutions to expand its investment offerings and reach, which can further enhance its revenue potential.

City of London Investment Financial Statement Overview

Summary

City of London Investment demonstrates strong revenue growth and profitability with a 27.23% increase in revenue and healthy profit margins. The balance sheet is solid with low leverage, and cash flow generation is robust, supporting future growth. However, rising operational costs and a slight increase in debt warrant monitoring.

Income Statement

City of London Investment demonstrates strong revenue growth with a 27.23% increase in the latest year, indicating robust business expansion. The company maintains healthy margins, with a gross profit margin of 75.59% and a net profit margin of 26.95%, reflecting efficient cost management and profitability. However, there is a slight decline in EBIT margin from the previous year, which could suggest rising operational costs.

Balance Sheet

The company exhibits a solid financial position with a low debt-to-equity ratio of 0.055, indicating conservative leverage and financial stability. Return on equity stands at 12.91%, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a well-capitalized balance sheet. However, the slight increase in total debt over the year warrants monitoring.

Cash Flow

City of London Investment shows impressive free cash flow growth of 34.02%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.31 indicates efficient cash conversion. The free cash flow to net income ratio is nearly 1, suggesting that the company is effectively converting its profits into cash. Overall, the cash flow position is robust, supporting future growth and investment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	57.42M	73.04M	54.87M	57.65M	55.12M	61.29M
Gross Profit	55.22M	55.22M	40.52M	49.60M	48.48M	53.46M
EBITDA	24.78M	32.94M	23.37M	23.49M	28.08M	28.04M
Net Income	15.43M	19.68M	10.74M	24.06M	9.52M	22.82M
Balance Sheet
Total Assets	175.88M	175.88M	178.97M	140.98M	141.38M	150.01M
Cash, Cash Equivalents and Short-Term Investments	35.49M	35.49M	33.74M	22.49M	25.51M	22.68M
Total Debt	8.83M	8.83M	5.73M	2.16M	2.74M	2.60M
Total Liabilities	23.42M	23.42M	25.33M	18.63M	21.07M	21.24M
Stockholders Equity	152.46M	152.46M	121.38M	122.34M	120.13M	128.77M
Cash Flow
Free Cash Flow	19.56M	25.02M	16.66M	18.59M	22.93M	24.69M
Operating Cash Flow	19.67M	25.15M	17.05M	19.07M	23.02M	24.95M
Investing Cash Flow	-103.67K	-132.00K	4.90M	-479.76K	852.72K	-4.13M
Financing Cash Flow	-17.95M	-23.27M	-16.83M	-18.99M	-12.87M	-24.24M

City of London Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 373.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 373 is below the 20-day moving average (MA) of 389.45, below the 50-day MA of 376.75, and above the 200-day MA of 361.03, indicating a bullish trend. The MACD of 5.66 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLIG	76 Outperform	£188.80M	12.60	13.07%	8.15%	1.29%	11.17%
BRK	72 Outperform	£247.04M	24.26	7.58%	5.14%	-13.29%	63.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LIO	64 Neutral	£145.16M	11.79	9.72%	21.31%	-15.65%	-12.27%
IPX	62 Neutral	£196.69M	10.19	16.48%	17.93%	-16.53%	-44.15%
PMI	54 Neutral	£70.07M	57.69	1.05%	11.43%	-3.99%	-36.07%

City of London Investment Corporate Events

City of London Investment Group names Cooper Abbott as new CEO to spearhead next growth phase

City of London Investment Group has appointed veteran investment executive Cooper Abbott as its new Chief Executive Officer and Executive Director with immediate effect, following a formal search run by the board’s nomination committee. Abbott, who previously founded and built Carillon Tower Advisors into a $70bn global multi-boutique asset manager and later served as Chairman and CEO of Matthews International Capital Management, brings more than 20 years of experience in public and private markets, organic and acquisition-led growth, and both institutional and wealth channels. The board highlighted his track record in scaling investment businesses and his alignment with CLIG’s fiduciary standards and long-term strategy, signalling an intention to drive the next phase of growth and expand the group’s global reach while aiming to enhance outcomes for clients, shareholders and employees.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £407.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.

City of London Investment Group Lifts Assets Despite Client Rebalancing Outflows

City of London Investment Group reported a 4% rise in funds under management to an estimated $11.2bn for the six months to 31 December 2025, with assets increasing further to $11.6bn by mid‑January 2026, driven by favourable markets and solid investment performance. CLIM’s emerging markets and listed private equity strategies delivered notable outperformance versus benchmarks, helped by country allocation, narrowing closed‑end fund discounts and corporate actions, while international equity and opportunistic value posted modest underperformance; KIM’s balanced and fixed‑income strategies generally matched or slightly beat benchmarks, supported by strong long‑term fixed‑income results. Despite strong market returns, the group recorded net outflows of $853m, largely due to client portfolio rebalancing, strategic shifts towards liability‑matching and passive strategies, and funding needs, though it still attracted $247m of gross inflows across EM, international equity and fixed‑income products. Overall, most strategies are now reporting higher asset levels, underscoring resilient portfolios and sustained client interest even amid mixed flows and ongoing discount volatility in the closed‑end fund space.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £407.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.

City of London Investment Group Awards Shares to COO

City of London Investment Group PLC announced that Edward Sevick, the Chief Operating Officer, has been granted 3,468 Restricted Share Awards as part of the company’s Employee Incentive Plan. This award, which includes Deferred Shares and Bonus Shares, reflects the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially impacting the company’s operational dynamics and stakeholder relations.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £454.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.

City of London Investment Group Awards Shares to CFO

City of London Investment Group PLC announced that its Chief Financial Officer, Deepranjan Agrawal, has been awarded 16,514 Restricted Share Awards under the company’s Employee Incentive Plan. This award, which includes both Deferred Shares and Bonus Shares, reflects the company’s commitment to incentivizing its key personnel and aligns with its strategic goals of retaining top talent. The transaction, conducted on the London Stock Exchange, enhances Mr. Agrawal’s stake in the company, representing approximately 0.3% of the issued share capital, which may positively impact stakeholder confidence in the company’s leadership and future performance.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £454.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.

City of London Investment Group Awards Shares to Key Executive

City of London Investment Group PLC announced the awarding of 20,592 Restricted Share Awards to Daniel Lippincott, a person discharging managerial responsibilities. This award, part of the company’s Employee Incentive Plan, includes both Deferred Shares and Bonus Shares, reflecting the company’s strategy to incentivize key personnel and align their interests with those of the shareholders.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £454.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.

City of London Investment Group Awards Shares Under Employee Incentive Plan

City of London Investment Group PLC announced the awarding of Restricted Share Awards to Michael Edmonds and Courtney Edmonds under the company’s Employee Incentive Plan. Michael Edmonds received 18,104 shares, while Courtney Edmonds was awarded 3,496 shares. Additionally, both individuals sold a portion of their shares, impacting their beneficial interests in the company. These transactions reflect the company’s ongoing efforts to align employee incentives with shareholder interests.

The most recent analyst rating on (GB:CLIG) stock is a Buy with a £454.00 price target. To see the full list of analyst forecasts on City of London Investment stock, see the GB:CLIG Stock Forecast page.