Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 494.28K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.52
• Revenue Growth: -1.22%
• EPS Growth: 112.13%
• Country: US
• Employees: 3,563
• Sector: Communication Services
• Sector Strength: 85
• Industry: Traditional Media
• EPS (TTM): 1.91
• Shares Outstanding: 54,343,494
• 10 Day Avg. Volume: 404,096
• 30 Day Avg. Volume: 494,281
• PEG Ratio: 0.18
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.08
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 3.10
• 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: $57.67
• Price Target Upside: 57.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Criteo SA's overall score reflects strong financial performance with robust profitability and solid cash flow management. The recent earnings call and CEO appointment suggest positive future prospects, although technical indicators show a neutral trend. A reasonable valuation supports the stock's appeal, despite lacking a dividend yield.

Positive Factors

Market Opportunities

Criteo is uniquely positioned to offer measurement capabilities that could unlock additional market segments like fintech and travel.

Partnerships

Management announced 5 new Microsoft retail media clients will be joining Criteo's supply side, with expectations for steady expansion.

Negative Factors

Revenue Challenges

Dilutive revenue mix-shift towards Retail Media presents challenges for sustainable margin expansion.

Criteo SA Business Overview & Revenue Model

Company Description

Criteo SA (CRTO) is a global technology company specializing in digital advertising solutions. The company operates within the ad-tech sector, providing performance-based marketing services to e-commerce companies, brands, and retailers. Criteo's core products leverage data and machine learning to deliver personalized advertisements across various digital platforms, including web, mobile, and social media, aiming to drive sales and enhance customer engagement for its clients.

How the Company Makes Money

Criteo SA generates revenue primarily through its performance marketing platform, which enables advertisers to target and retarget consumers with personalized advertising. The company's revenue model is based on a cost-per-click (CPC) or cost-per-action (CPA) pricing structure, where advertisers pay Criteo based on the number of clicks or specific actions taken by users on the advertisements. Additionally, Criteo employs a revenue-sharing model with publishers and partners, where earnings are shared based on advertising performance. Key partnerships with major e-commerce platforms, retailers, and data providers enhance Criteo's ability to deliver effective advertising solutions and expand its market reach.

Criteo SA Financial Statement Overview

Summary

Criteo SA exhibits solid financial health with strong profitability margins and a robust balance sheet. Despite challenges in revenue growth, the company demonstrates operational efficiency and effective cash flow management, indicating resilience in the traditional media industry.

Income Statement

Criteo SA's income statement shows a stable gross profit margin at 50.8% TTM, showing improved profitability from the previous year. The net profit margin also increased to 5.8% TTM, signaling better overall efficiency. However, revenue growth is negative at -0.9% TTM, indicating challenges in increasing sales. The EBIT margin of 8.7% TTM is a positive sign of operational efficiency, while the EBITDA margin has grown to 11.4% TTM, reflecting solid earnings before depreciation and amortization.

Balance Sheet

Criteo SA has a strong balance sheet, with a low debt-to-equity ratio of 0.10 TTM, indicating low leverage and financial stability. The return on equity is 10.7% TTM, consistent with the company's profitability on shareholder investments. The equity ratio at 46.3% TTM suggests a balanced capital structure, providing financial stability. The company maintains adequate liquidity with net debt being negative, highlighting excess cash over debt.

Cash Flow

The cash flow statement indicates healthy cash generation, with a free cash flow growth rate of 53.2% TTM, reflecting robust cash management. The operating cash flow to net income ratio is 2.30 TTM, signifying strong cash generation relative to reported earnings. The free cash flow to net income ratio is 1.80 TTM, suggesting efficient conversion of earnings to cash flow, which supports reinvestment and debt servicing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.93B	1.95B	2.02B	2.25B	2.07B
	Gross Profit
982.97M	863.04M	795.20M	781.94M	688.02M
	EBIT
151.40M	77.22M	24.28M	151.88M	108.83M
	EBITDA
151.40M	154.60M	199.05M	247.02M	182.16M
	Net Income Common Stockholders
114.71M	53.26M	8.95M	134.46M	71.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
290.69M	342.31M	373.30M	565.83M	488.01M
	Total Assets
2.27B	2.43B	2.35B	1.98B	1.85B
	Total Debt
103.40M	121.92M	108.54M	127.96M	131.40M
	Net Debt
-187.30M	-217.89M	-239.66M	-387.57M	-356.62M
	Total Liabilities
1.19B	1.32B	1.27B	785.27M	700.72M
	Stockholders Equity
1.05B	1.08B	1.05B	1.16B	1.12B
Cash Flow		Free Cash Flow
258.16M	131.75M	171.19M	165.93M	118.07M
	Operating Cash Flow
258.16M	224.25M	255.99M	220.91M	185.36M
	Investing Cash Flow
-97.90M	-108.71M	-166.12M	-76.37M	-101.09M
	Financing Cash Flow
-270.50M	-147.25M	-113.04M	-80.12M	-57.75M

Criteo SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRTO, the sentiment is Negative. The current price of 36.66 is below the 20-day moving average (MA) of 41.22, below the 50-day MA of 40.00, and below the 200-day MA of 40.86, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRTO.

Criteo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	73 Outperform	$2.08B	19.73	10.43%	―	-1.22%	112.13%
RAMP	73 Outperform	$1.95B	94,700.00	-0.25%	―	14.50%	―
MGNI	68 Neutral	$2.07B	98.27	3.10%	―	7.82%	―
PERI	67 Neutral	$392.65M	31.59	1.75%	―	-32.95%	-89.11%
PUBM	67 Neutral	$519.73M	43.10	4.36%	―	9.08%	43.58%
TTD	63 Neutral	$32.24B	83.16	15.37%	―	25.63%	118.49%
Sector *	59 Neutral	$30.54B	0.25	-13.23%	4.04%	2.36%	-49.53%

Criteo SA Corporate Events

Criteo SA Appoints New CEO to Lead Growth

On January 14, 2025, Criteo S.A. announced the appointment of Michael Komasinski as Chief Executive Officer, effective February 15, 2025. Komasinski, who brings over two decades of experience in AdTech, will succeed Megan Clarken, who is retiring. The appointment is anticipated to bolster Criteo’s strategic direction and enhance its commerce and retail media leadership. Komasinski’s background includes significant roles at dentsu and Merkle, where he led technological transformations and AI integrations, underscoring his capability to drive growth and innovation in global organizations.