Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 398.65K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.61
• Revenue Growth: -1.18%
• EPS Growth: 100.33%
• Country: US
• Employees: 3,507
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): 1.10
• Shares Outstanding: 53,141,870
• 10 Day Avg. Volume: 522,766
• 30 Day Avg. Volume: 398,650
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.33
• Price Target Upside: 48.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Criteo SA performs well in terms of profitability and cash flow, reflecting strong operational efficiency. The valuation is reasonable, and the company maintains a solid financial position. However, technical indicators suggest a bearish trend, and macroeconomic challenges along with key client reductions could impact growth. The overall score reflects these strengths and challenges.

Positive Factors

Market Position and Opportunities

Criteo appears well-positioned against a large $50 billion Retail Media SAM, with meaningful growth opportunities from Retail Media and Performance Media moving forward.

Partnerships and Collaborations

Criteo benefits from Microsoft Advertising onboarding for the onsite needs of CRTO Retailer partners, and the addition of 300 new brands.

Negative Factors

Client Loss and Revenue Impact

Reduced services to Criteo's largest media client (Uber Eats) will have a significant financial impact.

Client Relationships and Revenue

The largest retail media partner is reducing the scope of its relationship with Criteo, impacting revenue by $100 million annually.

Guidance and Financial Outlook

Management lowered the 2025E guide to low-single-digit percent growth due to macro uncertainty and a $25M impact from the idiosyncratic loss of their largest customer.

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's financial performance reflects strong profitability and cash generation capabilities, supported by effective cost management and operational efficiency. While revenue growth poses challenges, significant improvements in profit margins and return on equity demonstrate resilience. The company's conservative leverage strategy provides financial stability, although declining asset levels could impact future growth prospects.

Income Statement

Criteo SA demonstrated a strong gross profit margin of 51.83% TTM, indicating effective cost management and pricing strategies. The net profit margin improved to 7.46% TTM, reflecting enhanced profitability. Revenue growth has been challenging, with a slight decline of -0.25% from 2023 to 2024, and -2.62% from 2022 to 2023, indicating potential market pressure. However, EBIT and EBITDA margins have shown improvement TTM at 10.27% and 13.19% respectively, highlighting operational efficiency.

Balance Sheet

The debt-to-equity ratio is low at 0.10 TTM, indicating conservative leverage and strong equity financing. Return on equity has significantly improved to 13.56% TTM, showcasing effective utilization of shareholder funds. The equity ratio stands at 50.04% TTM, reflecting a balanced asset structure. However, the declining total assets trend poses a potential risk to long-term growth.

Cash Flow

Free cash flow has grown impressively by 34.26% TTM, and the operating cash flow to net income ratio is robust at 2.12 TTM, indicating strong cash generation relative to profits. The company exhibits a healthy free cash flow to net income ratio of 1.67 TTM, underscoring efficient cash management. These metrics suggest strong liquidity and capacity to reinvest in growth opportunities.

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
245.84M	154.60M	199.05M	247.02M	182.16M
	Net Income Common Stockholders
111.37M	53.26M	8.95M	134.46M	71.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
316.94M	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
180.05M	131.75M	171.19M	165.93M	118.07M
	Operating Cash Flow
257.70M	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: 28.46
• 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 28.46 is below the 20-day moving average (MA) of 30.68, below the 50-day MA of 33.33, and below the 200-day MA of 39.59, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 17.90 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
MGNI	70 Outperform	$1.71B	87.67	4.30%	―	5.59%	―
IAS	70 Outperform	$1.19B	31.86	3.94%	―	11.75%	401.94%
CRTO	69 Neutral	$1.48B	11.30	13.46%	―	-1.18%	100.33%
ZD	68 Neutral	$1.35B	24.78	4.12%	―	3.24%	36.80%
STGW	67 Neutral	$2.46B	297.97	0.19%	―	9.86%	―
Sector *	60 Neutral	$13.50B	7.33	-2.74%	3.80%	2.09%	-39.49%
QNST	58 Neutral	$1.00B	―	-0.29%	―	88.81%	99.16%

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.