Criteo SA (CRTO) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 402.75K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.63
• Revenue Growth: -1.18%
• EPS Growth: 100.33%
• Country: US
• Employees: 3,507
• Sector: Communication Services
• Sector Strength: 87
• Industry: Advertising Agencies
• EPS (TTM): 1.10
• Shares Outstanding: 53,141,870
• 10 Day Avg. Volume: 364,372
• 30 Day Avg. Volume: 402,752
• PEG Ratio: 0.31
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.54
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 1.08
• 1Y Price Target: $39.88
• Price Target Upside: 71.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: $27.00 ▲(16.33%Upside)

Criteo's overall score is driven by robust financial performance and valuation. However, it's tempered by technical weakness and challenges identified in the earnings call, such as client changes and macroeconomic uncertainties. The solid corporate events provide some positive offset.

Positive Factors

Growth Potential

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, following the onboarding of MSFT retail partners.

Strategic Partnerships

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

The abrupt transition of Criteo’s largest client along with the exit of Uber Eats US presents a significant optical reset for the company.

Financial Guidance

Management lowered the 2025E guide to low-single-digit growth in Contribution ex-TAC, down from prior mid-single-digit guidance due to macro uncertainty and a $25M impact from the loss of their largest customer.

Investor Sentiment

Investor sentiment remains low after the 1Q25 miss related to two large customers reducing scope.

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 SA generates revenue primarily through its performance marketing platform, which connects advertisers with consumers by delivering personalized ads based on user data and behavior. The company operates on a cost-per-click (CPC) and cost-per-impression (CPM) basis, charging advertisers when users engage with or view their ads. Criteo also leverages its extensive network of publisher partners to display ads, sharing a portion of the advertising revenue with these partners. Additionally, Criteo's data-driven insights and advanced machine learning capabilities enhance ad targeting and conversion rates, contributing to its revenue growth. Key partnerships with leading e-commerce platforms and retailers further bolster its revenue streams by expanding its reach and effectiveness in digital advertising.

Criteo SA Financial Statement Overview

Summary

Criteo SA shows strong profitability and cash generation with improved margins and return on equity. However, challenges include a decline in revenue growth and asset levels, which 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
EBITDA	245.84M	154.60M	199.05M	247.02M	182.16M
Net Income	111.37M	53.26M	8.95M	134.46M	71.68M
Balance Sheet
Total Assets	2.27B	2.43B	2.35B	1.98B	1.85B
Cash, Cash Equivalents and Short-Term Investments	316.94M	342.31M	373.30M	565.83M	488.01M
Total Debt	103.40M	121.92M	108.54M	127.96M	131.40M
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: 23.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 23.21 is below the 20-day moving average (MA) of 23.98, below the 50-day MA of 25.37, and below the 200-day MA of 34.75, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 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	73 Outperform	$1.39B	29.68	4.80%	―	13.84%	1494.51%
MGNI	71 Outperform	$3.26B	116.49	4.30%	―	5.59%	―
STGW	71 Outperform	$1.32B	950.98	0.19%	―	9.86%	―
CRTO	70 Outperform	$1.24B	9.46	13.46%	―	-1.18%	100.33%
ZD	70 Neutral	$1.28B	18.96	4.12%	―	3.24%	36.80%
QNST	65 Neutral	$899.84M	―	-0.29%	―	88.81%	99.16%
Sector *	62 Neutral	$41.89B	-1.63	-12.07%	3.43%	2.03%	-69.89%

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.

The most recent analyst rating on (CRTO) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Criteo SA stock, see the CRTO Stock Forecast page.

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.

The most recent analyst rating on (CRTO) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Criteo SA stock, see the CRTO Stock Forecast page.