Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 424.02K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.58
• Revenue Growth: -0.40%
• EPS Growth: 36.44%
• Country: US
• Employees: 3,507
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 0.92
• Shares Outstanding: 53,141,870
• 10 Day Avg. Volume: 277,391
• 30 Day Avg. Volume: 424,023
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 4.38
• 1Y Price Target: $41.00
• Price Target Upside: 75.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: $26.00 ▲(11.11% Upside)

Criteo SA's overall stock score is driven by strong financial performance and attractive valuation. The company's strategic initiatives and positive earnings call guidance further bolster its position. However, technical indicators suggest caution, and challenges in certain market segments could pose risks. The company's focus on AI innovation and strategic investments is expected to sustain long-term growth.

Positive Factors

Financial Performance

Criteo's performance in the second quarter was better than expected, with a modest increase in revenue and adjusted EBITDA forecasts.

Growth 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.

Market Position

Criteo now works with 70% of the Top 30 US Retailers and 50% of the Top 30 in the EU.

Negative Factors

Client Loss

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

Growth Expectations

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

Revenue Impact

Criteo's largest client's transition to in-house management is expected to negatively impact revenue.

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 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 and resilience. While revenue growth is moderate, the consistent improvement in margins and cash flows positions Criteo SA 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	1.95B	1.93B	1.95B	2.02B	2.25B	2.07B
Gross Profit	1.03B	982.97M	863.04M	795.20M	781.94M	688.02M
EBITDA	289.43M	245.84M	154.60M	199.05M	247.02M	182.16M
Net Income	136.54M	111.37M	53.26M	8.95M	134.46M	71.68M
Balance Sheet
Total Assets	2.11B	2.27B	2.43B	2.35B	1.98B	1.85B
Cash, Cash Equivalents and Short-Term Investments	223.59M	316.94M	342.31M	373.30M	565.83M	488.01M
Total Debt	117.51M	103.40M	121.92M	108.54M	127.96M	131.40M
Total Liabilities	986.61M	1.19B	1.32B	1.27B	785.27M	700.72M
Stockholders Equity	1.09B	1.05B	1.08B	1.05B	1.16B	1.12B
Cash Flow
Free Cash Flow	229.67M	180.05M	131.75M	171.19M	165.93M	118.07M
Operating Cash Flow	287.49M	257.70M	224.25M	255.99M	220.91M	185.36M
Investing Cash Flow	-104.47M	-97.90M	-108.71M	-166.12M	-76.37M	-101.09M
Financing Cash Flow	-271.54M	-270.50M	-147.25M	-113.04M	-80.12M	-57.75M

Criteo SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.40
• 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 23.4 is below the 20-day moving average (MA) of 23.90, below the 50-day MA of 23.80, and below the 200-day MA of 32.40, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 13.81 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
IAS	77 Outperform	$1.45B	26.08	5.52%	―	14.39%	1946.11%
CRTO	75 Outperform	$1.35B	9.81	12.79%	―	-0.40%	36.44%
ZD	74 Outperform	$1.53B	25.72	3.56%	―	5.94%	-8.89%
MGNI	74 Outperform	$3.64B	87.30	5.82%	―	5.52%	―
STGW	73 Outperform	$1.43B	627.27	-0.29%	―	6.50%	―
QNST	66 Neutral	$892.25M	193.49	2.04%	―	78.27%	―
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%

Criteo SA Corporate Events

Criteo SA Announces CRO Brian Gleason’s Resignation

On June 27, 2025, Brian Gleason announced his resignation from Criteo S.A. as Chief Revenue Officer and President, Retail Media, effective July 29, 2025, to pursue a CEO role at a private company. Criteo expressed gratitude for his contributions and remains confident in its strategy, with plans to release its second-quarter financial results on July 30, 2025.

Criteo SA Approves Key Resolutions at Shareholder Meeting

On June 13, 2025, Criteo SA held its Annual Combined General Meeting of Shareholders where several resolutions were approved, including the renewal of director terms, appointment of new directors, and ratification of interim appointments. Additionally, resolutions on financial statements, compensation, and amendments to company by-laws were passed, reflecting strategic decisions to enhance governance and operational flexibility. These approvals indicate a solidified leadership structure and strategic alignment with regulatory requirements, potentially impacting the company’s market operations and shareholder value positively.