Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 567.61K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.84
• 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: 587,798
• 30 Day Avg. Volume: 567,608
• 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: 1.01
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 3.15
• 1Y Price Target: $34.67
• Price Target Upside: 64.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $23.50 ▲(11.48% Upside)

The score is driven primarily by strong financial performance (rapid TTM growth, margin expansion, robust free cash flow, and low leverage) and supportive valuation (low P/E). Offsetting factors are a mixed technical picture (below longer-term moving averages with slightly negative MACD) and operational headwinds noted on the earnings call (fashion weakness and client-related Retail Media pressures), though guidance and margin performance were favorable.

Positive Factors

Revenue and Margin Improvement

Sustained double‑digit TTM revenue growth alongside expanding gross, EBIT and EBITDA margins indicates scalable unit economics and improved monetization. This supports reinvestment in AI and product development and underpins durable profitability if growth consistency is maintained.

Strong Cash Generation and Low Leverage

Robust FCF growth and cash conversion (FCF > net income) combined with a very low debt‑to‑equity ratio provide financial flexibility for R&D, strategic partnerships, or M&A. This balance sheet strength reduces refinancing risk and supports long‑term strategic investments.

Retail Media Momentum and Platform Adoption

Significant Retail Media spend growth and rapid Commerce GO adoption show product-market fit in retail advertising and successful self‑service scaling. Network effects from 4,100+ brands and increasing automation bolster durable addressable demand and recurring revenue potential.

Negative Factors

Client Scope and Concentration Risk

Revenue exposed to a small number of large clients and scope fee changes creates outsized volatility risk; contract scope shifts can materially affect contribution ex‑TAC and complicate revenue predictability, challenging long‑term growth visibility.

Segment Cyclicality — Fashion Weakness

An 11% decline in fashion spend highlights sector cyclicality and client sensitivity within a key vertical. Persistent weakness in large categories can depress media spend and contribution, making revenue less resilient absent broader vertical diversification.

Redomiciliation and Execution Risk

Planned cross‑border conversion and ADS replacement are structural changes that could improve capital flexibility but require shareholder approvals and operational execution. Delays, regulatory hurdles, or poor execution could distract management and introduce legal/tax complexity over months.

Criteo SA Business Overview & Revenue Model

Company Description

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, and Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. Its Criteo AI Engine solutions include lookalike finder, recommendation, and predictive bidding algorithms; bidding engine that executes campaigns based on certain objectives set by its clients; dynamic creative optimization+, which assembles customized creative advertising content by optimizing each individual creative component in the advertisement; software systems and processes, which enable data synchronization, storage, and analysis of distributed computing infrastructure in various geographies; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. The company also provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. In addition, it offers real-time access to advertising inventory through its publisher partners; consulting services to companies in distance sales; and business intelligence and analytics services. It serves companies in digital retail, travel, and classifieds industries. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.

How the Company Makes Money

Criteo generates revenue primarily through its performance-based advertising model, where clients pay for ads based on the outcomes they achieve, such as clicks or conversions. Key revenue streams include the sale of advertising inventory across various digital channels, including desktop, mobile, and social media platforms. Criteo also earns revenue from its data-driven marketing solutions, which offer insights and analytics to help clients optimize their advertising campaigns. The company has significant partnerships with various retailers, e-commerce platforms, and publishers, allowing it to access a wide array of inventory and consumer data, enhancing its advertising effectiveness. Additionally, Criteo's innovative use of machine learning and AI in targeting and personalization contributes to its competitive edge and revenue growth.

Criteo SA Financial Statement Overview

Summary

Criteo SA exhibits strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet is stable with low leverage, and cash flow generation is robust. However, attention to revenue consistency and asset management is necessary for sustained growth.

Income Statement

Criteo SA demonstrates strong financial performance with a notable improvement in gross profit margin and net profit margin over the TTM period. The company has achieved a significant revenue growth rate of 55.3% in the TTM, indicating robust expansion. EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency. However, past annual reports show fluctuations in revenue growth, which could pose a risk if not managed effectively.

Balance Sheet

The balance sheet of Criteo SA is stable, with a low debt-to-equity ratio of 0.096 in the TTM, indicating conservative leverage. The return on equity has improved to 15.7%, showcasing effective use of equity to generate profits. The equity ratio remains healthy, ensuring financial stability. However, the company should continue to monitor its asset management to maintain this stability.

Cash Flow

Criteo SA's cash flow statement reveals strong free cash flow growth of 45.2% in the TTM, highlighting efficient cash management. The operating cash flow to net income ratio is robust, indicating good cash conversion. The free cash flow to net income ratio above 1 suggests that the company generates more cash than its net income, which is a positive indicator of financial health. Nonetheless, maintaining this growth trajectory is crucial for future sustainability.

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	347.47M	245.84M	154.60M	199.05M	247.02M	215.86M
Net Income	168.06M	111.57M	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	278.76M	316.94M	342.31M	398.30M	565.83M	488.01M
Total Debt	109.31M	107.02M	118.45M	108.83M	128.96M	132.90M
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	222.94M	180.05M	131.75M	171.19M	165.93M	118.07M
Operating Cash Flow	320.00M	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: Neutral
• Last Price: 21.08
• 50DMA: Positive
• 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 Neutral. The current price of 21.08 is above the 20-day moving average (MA) of 20.41, above the 50-day MA of 20.64, and below the 200-day MA of 24.02, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 57.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRTO.

Criteo SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	76 Outperform	$1.09B	7.08	15.37%	―	0.32%	69.78%
ZD	69 Neutral	$1.43B	15.08	6.26%	―	5.70%	97.88%
MGNI	68 Neutral	$2.32B	43.29	7.56%	―	6.27%	226.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ADV	42 Neutral	$287.12M	-1.15	-29.47%	―	-7.12%	-7.75%
VSME	31 Underperform	―	-23.47	-194.72%	―	-11.51%	74.52%

Criteo SA Corporate Events

Criteo Plans Redomiciliation to Luxembourg and Nasdaq Listing

On January 7, 2026, Criteo S.A. announced that its board of directors, following a favorable opinion from the company’s works council, has approved the planned transfer of its legal domicile from France to Luxembourg via a cross-border conversion and the replacement of its American Depositary Shares structure with ordinary shares to be directly listed on Nasdaq. The company will convene a general shareholders’ meeting in Paris on February 27, 2026 to seek shareholder approval for the redomiciliation and related proposals, with record dates set for ordinary shareholders and ADS holders, and it continues to target completion of the conversion in the third quarter of 2026, positioning the group to streamline its corporate structure, enhance capital management flexibility and better align its capital markets presence with its long-term strategy, while maintaining its operational commitment to France and leaving open the option of a subsequent move of its legal domicile from Luxembourg to the United States.

The most recent analyst rating on (CRTO) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Criteo SA stock, see the CRTO Stock Forecast page.

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.