City of London Investment (CLIG) AI Stock Analysis

• Market Cap: £202.84M
• Dividend Yield: 7.73%
• Average Volume (3M): 51.59K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.85
• 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: 81,511
• 30 Day Avg. Volume: 51,594
• 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: £468.00
• Price Target Upside: 20.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: 468.00p ▲(20.00% Upside)

City of London Investment scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and cash flow generation. The technical analysis supports a positive outlook with strong market momentum. The valuation is attractive, offering a good balance of growth potential and income through dividends. Monitoring operational costs and debt levels will be important to sustain this performance.

City of London Investment Business Overview & Revenue Model

Company Description

City of London Investment Group (CLIG) is an investment management firm that specializes in managing assets for institutional clients across a diverse range of sectors. The company focuses on global equity markets and provides investment solutions tailored to the specific needs of its clients, including funds that target emerging markets, small-cap stocks, and alternative investments. CLIG's core services include portfolio management, investment advisory, and fund administration, aimed at delivering superior risk-adjusted returns for its clients.

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, supported by a stable balance sheet with low leverage. Cash flow generation is robust, providing a solid foundation for future growth. Monitoring operational costs and debt levels will be important to sustain this performance.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.42M	73.04M	54.87M	57.65M	61.29M	55.12M
Gross Profit	55.22M	55.22M	40.52M	49.60M	53.46M	48.48M
EBITDA	24.78M	32.94M	23.37M	23.49M	28.04M	28.08M
Net Income	15.43M	19.68M	10.74M	24.06M	22.82M	9.52M
Balance Sheet
Total Assets	175.88M	175.88M	178.97M	140.98M	150.01M	141.38M
Cash, Cash Equivalents and Short-Term Investments	35.49M	35.49M	33.74M	22.49M	22.68M	25.51M
Total Debt	8.41M	8.41M	5.73M	2.16M	2.60M	2.74M
Total Liabilities	23.42M	23.42M	25.33M	18.63M	21.24M	21.07M
Stockholders Equity	152.46M	152.46M	121.38M	122.34M	128.77M	120.13M
Cash Flow
Free Cash Flow	19.56M	25.02M	16.66M	18.59M	24.69M	22.93M
Operating Cash Flow	19.67M	25.15M	17.05M	19.07M	24.95M	23.02M
Investing Cash Flow	-103.67K	-132.00K	4.90M	-479.76K	-4.13M	852.72K
Financing Cash Flow	-17.95M	-23.27M	-16.83M	-18.99M	-24.24M	-12.87M

City of London Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 390.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 390 is above the 20-day moving average (MA) of 375.52, above the 50-day MA of 360.59, and above the 200-day MA of 341.57, indicating a bullish trend. The MACD of 9.82 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.65 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
BRK	80 Outperform	279.17M	27.15	―	4.50%	-13.29%	63.87%
CLIG	79 Outperform	£202.84M	13.53	13.07%	7.73%	1.29%	11.17%
IPX	75 Outperform	236.48M	7.62	27.82%	14.35%	-9.06%	-24.06%
REC	74 Outperform	113.41M	12.53	31.33%	7.78%	-7.46%	-2.48%
LIO	67 Neutral	206.72M	12.42	12.08%	21.85%	-14.24%	―
MERC	55 Neutral	142.33M	41.25	1.84%	1.12%	0.11%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

City of London Investment Corporate Events

City of London Investment Group Reports Strong Performance and Leadership Changes

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.

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.