City of London Investment (CLIG) AI Stock Analysis

• Market Cap: £170.40M
• Dividend Yield: 6.34%
• Average Volume (3M): 65.02K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.71
• Revenue Growth: 0.27%
• EPS Growth: 1.47%
• Country: UK
• Employees: 117
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 0.17
• Shares Outstanding: 50,679,096
• 10 Day Avg. Volume: 140,182
• 30 Day Avg. Volume: 65,018
• 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: 74 Outperform
• Price Target: 393.00p ▲(14.24%Upside)

The overall stock score of 73.5 reflects a strong valuation and solid financial performance, tempered by weak technical indicators. The company's attractive dividend yield and recent positive corporate developments contribute positively, while declining revenue and cash flow growth pose challenges.

City of London Investment Business Overview & Revenue Model

Company Description

City of London Investment Group (CLIG) is an established asset management firm headquartered in London, specializing in emerging market closed-end fund investments. The company primarily caters to institutional investors, offering a range of investment vehicles designed to maximize returns through diversified portfolios in emerging markets. CLIG operates in the financial services sector and is recognized for its expertise in fund management and strategic investment solutions.

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
	EBIT
17.67M	16.19M	18.15M	23.29M	24.11M	10.71M
	EBITDA
23.50M	23.37M	23.49M	28.04M	28.08M	12.52M
	Net Income Common Stockholders
14.46M	10.74M	24.06M	22.82M	9.52M	9.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.12M	33.74M	22.49M	22.68M	25.51M	14.59M
	Total Assets
137.05M	178.97M	140.98M	150.01M	141.38M	27.59M
	Total Debt
4.36M	5.73M	2.16M	2.60M	2.74M	1.96M
	Net Debt
-19.76M	-22.12M	-20.33M	-20.08M	-22.77M	-12.64M
	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: Negative
• Last Price: 344.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 344 is below the 20-day moving average (MA) of 363.55, below the 50-day MA of 356.76, and below the 200-day MA of 356.39, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£103.93M	11.12	33.39%	7.85%	4.14%	-4.64%
IPX	80 Outperform	£249.60M	8.12	26.26%	14.11%	-9.06%	-24.06%
BRK	78 Outperform	£255.49M	14.21	12.53%	3.68%	-9.19%	174.56%
CLIG	74 Outperform	£170.40M	12.10	11.92%	6.34%	0.27%	1.47%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
MERC	61 Neutral	£126.40M	―	-3.67%	1.26%	35.36%	-153.97%
LIO	58 Neutral	£253.14M	17.68	8.88%	10.90%	-22.50%	-15.51%

City of London Investment Corporate Events

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.