Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 448.39K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.81
• Revenue Growth: 0.32%
• EPS Growth: 69.78%
• Country: US
• Employees: 3,507
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 1.31
• Shares Outstanding: 53,141,870
• 10 Day Avg. Volume: 557,008
• 30 Day Avg. Volume: 448,391
• PEG Ratio: 0.17
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 12.04
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 4.37
• 1Y Price Target: $35.00
• Price Target Upside: 55.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.54
• Revenue Forecast (FY): $1.17B

• Rating: 78 Outperform
• Price Target: $25.00 ▲(11.11% Upside)

Criteo's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust growth in key segments and strategic partnerships are promising. However, technical indicators suggest caution, and valuation metrics indicate potential undervaluation. Addressing challenges in specific segments will be crucial for sustained growth.

Positive Factors

Retail Media Growth

The significant growth in Retail Media indicates strong demand and effective market penetration, enhancing Criteo's competitive position in the digital advertising space.

Strategic Partnerships

These partnerships are likely to expand Criteo's market reach and enhance its service offerings, supporting long-term growth and innovation in its advertising solutions.

Cash Flow Generation

Strong cash flow growth underscores Criteo's ability to fund operations and strategic initiatives, providing financial flexibility and stability for future expansion.

Negative Factors

Challenges in Retail Media

Scope changes with key clients could impact revenue stability in Retail Media, posing a risk to maintaining consistent growth in this segment.

Decline in Fashion Segment

The decline in the fashion segment highlights potential vulnerabilities in specific verticals, which could affect overall revenue diversification and growth.

Slower Ramp-Up with New Clients

A slower ramp-up with new clients may delay expected revenue contributions, impacting short-term growth projections and requiring adjustments in client acquisition strategies.

Criteo SA Business Overview & Revenue Model

Company Description

Criteo SA (CRTO) is a global technology company specializing in digital advertising and marketing solutions. Founded in 2005 and headquartered in Paris, France, Criteo operates primarily in the online advertising sector, focusing on performance-based ads through its proprietary technology platform. The company provides a range of services including retargeting, audience targeting, and personalized ad solutions aimed at driving online sales and customer engagement for its clients, which include e-commerce businesses and advertisers across various industries.

How the Company Makes Money

Criteo generates revenue primarily through its performance marketing services, where it charges advertisers based on the number of clicks or conversions generated by its ads. The key revenue streams include cost-per-click (CPC) and cost-per-acquisition (CPA) models, allowing clients to pay only when users engage with their ads or complete desired actions, such as making a purchase. Additionally, Criteo collaborates with various publishers and online platforms to expand its advertising reach, which enhances its inventory and effectiveness. Significant partnerships with major e-commerce platforms and data providers also contribute to its earnings by enhancing targeting capabilities and improving ad performance.

Criteo SA Financial Statement Overview

Summary

Criteo SA exhibits strong financial performance with solid profitability, effective cost management, and robust cash flow generation. The company's low leverage and high equity ratio provide financial stability. While revenue growth is moderate, the consistent improvement in margins and cash flows positions Criteo favorably within the advertising industry.

Income Statement

Criteo SA demonstrates strong profitability with a consistent improvement in gross profit margin, reaching approximately 52.9% in TTM. The net profit margin has also improved to around 7.1% in TTM, indicating effective cost management. Revenue growth is moderate, and EBITDA margin shows a healthy level of operational efficiency at about 13.0% in TTM. The stability in EBIT margin suggests steady income performance.

Balance Sheet

The company maintains a solid equity position with an equity ratio of about 51.5%. The debt-to-equity ratio is manageable at approximately 0.11, reflecting low financial leverage. Return on Equity (ROE) has improved to around 12.7%, indicating effective use of equity to generate profit. Strong liquidity is evidenced by substantial cash reserves, although total assets have slightly declined recently.

Cash Flow

Operating cash flow is robust with a positive trajectory, leading to a favorable operating cash flow to net income ratio of 2.08 in TTM. Free cash flow has seen significant growth, reflecting efficient capital expenditure management, resulting in a free cash flow to net income ratio of 1.66 in TTM. Consistent positive free cash flow generation underscores strong cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	1.93B	1.95B	2.02B	2.25B	2.07B
Gross Profit	1.05B	982.97M	863.04M	795.20M	781.94M	688.02M
EBITDA	250.62M	256.97M	154.60M	199.05M	247.02M	182.16M
Net Income	170.35M	111.37M	53.26M	8.95M	134.46M	71.68M
Balance Sheet
Total Assets	2.06B	2.27B	2.43B	2.35B	1.98B	1.85B
Cash, Cash Equivalents and Short-Term Investments	255.01M	316.94M	342.31M	373.30M	565.83M	488.01M
Total Debt	109.31M	107.02M	121.92M	108.54M	127.96M	131.40M
Total Liabilities	891.35M	1.19B	1.32B	1.27B	785.27M	700.72M
Stockholders Equity	1.13B	1.05B	1.08B	1.05B	1.16B	1.12B
Cash Flow
Free Cash Flow	333.50M	180.05M	131.75M	171.19M	165.93M	118.07M
Operating Cash Flow	319.58M	257.70M	224.25M	255.99M	220.91M	185.36M
Investing Cash Flow	-108.06M	-97.90M	-108.71M	-166.12M	-76.37M	-101.09M
Financing Cash Flow	-230.53M	-270.50M	-147.25M	-113.04M	-80.12M	-57.75M

Criteo SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 22.5 is above the 20-day moving average (MA) of 21.11, above the 50-day MA of 21.80, and below the 200-day MA of 28.15, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.13 is Neutral, 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	78 Outperform	$1.17B	7.55	15.37%	―	0.32%	69.78%
IAS	78 Outperform	$1.72B	36.68	4.48%	―	15.51%	39.60%
MGNI	68 Neutral	$2.44B	39.43	7.56%	―	6.27%	226.16%
QNST	64 Neutral	$863.99M	191.84	4.55%	―	43.12%	―
ZD	63 Neutral	$1.37B	22.48	3.56%	―	5.94%	-8.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	59 Neutral	$1.24B	506.31	3.80%	―	6.76%	1841.46%

Criteo SA Corporate Events

Criteo S.A. Reports Strong Q3 2025 Results

Criteo S.A. is a global platform that connects the commerce ecosystem for brands, agencies, retailers, and media owners, leveraging its AI-powered advertising platform to drive performance and growth in the digital commerce sector.

Criteo’s Earnings Call: Robust Growth Amid Challenges

Criteo’s recent earnings call painted a picture of robust financial health, underscored by strong growth in key areas such as Retail Media and Performance Media. The sentiment during the call was largely positive, driven by new product offerings and strategic partnerships. However, the company acknowledged challenges in specific segments, particularly in fashion and due to changes in Retail Media scope with certain clients.

Criteo SA Announces New Chief Customer Officer

On October 29, 2025, Criteo S.A. announced the appointment of Edouard Dinichert as Chief Customer Officer, effective December 1, 2025, and reported strong financial results for the third quarter of 2025. The company also revealed plans to transfer its legal domicile from France to Luxembourg and list its ordinary shares on Nasdaq, aiming to complete this transition by the third quarter of 2026, pending shareholder approval. These strategic moves, including a 2% increase in revenue and a significant rise in net income, underscore Criteo’s commitment to innovation and expanding its market influence, potentially enhancing shareholder value and operational efficiency.

The most recent analyst rating on (CRTO) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Criteo SA stock, see the CRTO Stock Forecast page.

Criteo S.A. Reports Strong Q2 2025 Results

Criteo S.A. is a global platform that connects the commerce ecosystem, providing AI-powered advertising solutions for brands, agencies, retailers, and media owners. The company operates in the digital advertising industry, known for its unique access to over $1 trillion in annual commerce sales.

Criteo’s Earnings Call Highlights Growth Amid Challenges

Criteo’s recent earnings call painted a picture of robust growth and innovation, particularly in Retail Media and product launches, while also acknowledging challenges in the retail sector and broader macroeconomic uncertainties. The sentiment during the call was optimistic about the company’s strategic direction, despite some hurdles in the ad tech services and retail sectors.