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City of London Investment Group

Market Cap

UK£262.4m

Last Updated

2021/05/07 19:31 UTC

Data Sources

Company Financials +

Executive Summary

City of London Investment Group PLC is a publically owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

How has City of London Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLIG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CLIG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

CLIG

-1.1%

GB Capital Markets

2.1%

GB Market


1 Year Return

71.1%

CLIG

17.9%

GB Capital Markets

26.6%

GB Market

Return vs Industry: CLIG exceeded the UK Capital Markets industry which returned 17.2% over the past year.

Return vs Market: CLIG exceeded the UK Market which returned 25.5% over the past year.


Shareholder returns

CLIGIndustryMarket
7 Day-1.5%-1.1%2.1%
30 Day0.8%-0.2%3.6%
90 Day7.0%-4.4%9.6%
1 Year83.2%71.1%21.3%17.9%32.1%26.6%
3 Year56.5%23.7%32.2%17.6%12.8%-0.2%
5 Year153.8%77.3%105.0%69.7%51.8%23.0%

Long-Term Price Volatility Vs. Market

How volatile is City of London Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is City of London Investment Group undervalued compared to its fair value and its price relative to the market?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLIG (£5.32) is trading below our estimate of fair value (£6.53)

Significantly Below Fair Value: CLIG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CLIG is good value based on its PE Ratio (18.1x) compared to the GB Capital Markets industry average (20.8x).

PE vs Market: CLIG is good value based on its PE Ratio (18.1x) compared to the UK market (25.9x).


Price to Earnings Growth Ratio

PEG Ratio: CLIG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CLIG is overvalued based on its PB Ratio (2.2x) compared to the GB Capital Markets industry average (1.9x).


Future Growth

How is City of London Investment Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLIG's forecast earnings growth (27.5% per year) is above the savings rate (0.9%).

Earnings vs Market: CLIG's earnings (27.5% per year) are forecast to grow faster than the UK market (17.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CLIG's revenue (17.8% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: CLIG's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CLIG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has City of London Investment Group performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLIG has a large one-off loss of £3.6M impacting its December 31 2020 financial results.

Growing Profit Margin: CLIG's current net profit margins (23%) are lower than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: CLIG's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: CLIG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLIG had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Capital Markets industry average (3.9%).


Return on Equity

High ROE: CLIG's Return on Equity (7.3%) is considered low.


Financial Health

How is City of London Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: CLIG's short term assets (£24.6M) exceed its short term liabilities (£8.6M).

Long Term Liabilities: CLIG's short term assets (£24.6M) exceed its long term liabilities (£11.1M).


Debt to Equity History and Analysis

Debt Level: CLIG is debt free.

Reducing Debt: CLIG has not had any debt for past 5 years.

Debt Coverage: CLIG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CLIG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is City of London Investment Group current dividend yield, its reliability and sustainability?

5.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLIG's dividend (5.64%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: CLIG's dividend (5.64%) is in the top 25% of dividend payers in the UK market (4.06%)


Stability and Growth of Payments

Stable Dividend: CLIG's dividends per share have been stable in the past 10 years.

Growing Dividend: CLIG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.2%), CLIG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLIG's dividends in 3 years are forecast to be covered by earnings (71.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Tom Griffith

2.17yrs

Tenure

UK£465,318

Compensation

Mr. Thomas Wayne Griffith, also known as Tom, is Chief Executive Officer of City of London Investment Group Plc since March 1, 2019. He is Chief Executive Officer and Director of City of London Investment ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD645.84K) is about average for companies of similar size in the UK market ($USD723.12K).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CLIG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CLIG's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CLIG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 98.3%.


Top Shareholders

Company Information

City of London Investment Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: City of London Investment Group PLC
  • Ticker: CLIG
  • Exchange: LSE
  • Founded: 1991
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£262.419m
  • Shares outstanding: 49.33m
  • Website: https://www.citlon.co.uk

Number of Employees


Location

  • City of London Investment Group PLC
  • 77 Gracechurch Street
  • London
  • Greater London
  • EC3V 0AS
  • United Kingdom

Listings


Biography

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 s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 19:31
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.