Criteo (NasdaqGS:CRTO) - Share price, News & Analysis

Q: What is the Fair Price of CRTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CRTO ($23.85) is trading below our estimate of [[fair value]] ($147.68)

CRTO fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

CRTO Stock Overview

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.

Rewards

Trading at 83.9% below our estimate of its fair value

Earnings are forecast to grow 13.79% per year

Earnings grew by 68.7% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Criteo Competitors

Stagwell

NasdaqGS:STGW

US$1.6b

Advantage Solutions

NasdaqGS:ADV

US$1.3b

PubMatic

NasdaqGM:PUBM

US$819.8m

Thryv Holdings

NasdaqCM:THRY

US$779.5m

Price History & Performance

Summary of all time highs, changes and price drops for Criteo
Historical stock prices
Current Share Price	US$23.85
52 Week High	US$46.65
52 Week Low	US$23.11
Beta	0.95
1 Month Change	-10.27%
3 Month Change	-13.87%
1 Year Change	-46.50%
3 Year Change	31.70%
5 Year Change	-51.16%
Change since IPO	-32.61%

Recent News & Updates

Jul 03

Is There Now An Opportunity In Criteo S.A. (NASDAQ:CRTO)?

While Criteo S.A. ( NASDAQ:CRTO ) might not be the most widely known stock at the moment, it received a lot of...

Jun 01

Is Now The Time To Put Criteo (NASDAQ:CRTO) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 13

Criteo (NASDAQ:CRTO) Seems To Use Debt Rather Sparingly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	CRTO	US Media	US Market
7D	-3.9%	1.3%	-2.5%
1Y	-46.5%	-33.2%	-21.2%

Return vs Industry: CRTO underperformed the US Media industry which returned -33.2% over the past year.

Return vs Market: CRTO underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is CRTO's price volatile compared to industry and market?
CRTO volatility
CRTO Average Weekly Movement	7.1%
Media Industry Average Movement	8.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: CRTO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CRTO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	2,781	Megan Clarken	https://www.criteo.com

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.

Criteo Fundamentals Summary

How do Criteo's earnings and revenue compare to its market cap?
CRTO fundamental statistics
Market Cap	US$1.44b
Earnings (TTM)	US$132.64m
Revenue (TTM)	US$2.22b

10.9x

P/E Ratio

0.6x

P/S Ratio

Is CRTO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRTO income statement (TTM)
Revenue	US$2.22b
Cost of Revenue	US$1.44b
Gross Profit	US$787.27m
Other Expenses	US$654.63m
Earnings	US$132.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.20
Gross Margin	35.40%
Net Profit Margin	5.96%
Debt/Equity Ratio	0.3%

How did CRTO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CRTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRTO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CRTO. This is calculated by dividing CRTO's market cap by their current preferred multiple.
What is CRTO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.44b

CRTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	4.1x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does CRTO's PE Ratio compare to its peers?

CRTO PE Ratio vs Peers

The above table shows the PE ratio for CRTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	48.9x
STGW Stagwell	156.2x	n/a	US$1.6b
ADV Advantage Solutions	17x	6.0%	US$1.3b
PUBM PubMatic	14.5x	9.8%	US$819.8m
THRY Thryv Holdings	7.9x	-14.2%	US$779.5m
CRTO Criteo	10.9x	13.8%	US$1.4b

Forward PE

Price-To-Earnings vs Peers: CRTO is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (48.9x).

Price to Earnings Ratio vs Industry

How does CRTO's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Earnings vs Industry: CRTO is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Media industry average (13.5x)

Price to Earnings Ratio vs Fair Ratio

What is CRTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.9x
Fair PE Ratio	19.4x

Price-To-Earnings vs Fair Ratio: CRTO is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).

Share Price vs Fair Value

What is the Fair Price of CRTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRTO ($23.85) is trading below our estimate of fair value ($147.68)

Significantly Below Fair Value: CRTO is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CRTO is good value based on its PEG Ratio (0.8x)

Discover undervalued companies

Future Growth

How is Criteo forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRTO's forecast earnings growth (13.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CRTO's earnings (13.8% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: CRTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRTO's revenue (0.4% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: CRTO's revenue (0.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CRTO's Return on Equity is forecast to be low in 3 years time (12.2%).

Discover growth companies

Past Performance

How has Criteo performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CRTO has high quality earnings.

Growing Profit Margin: CRTO's current net profit margins (6%) are higher than last year (3.7%).

Past Earnings Growth Analysis

Earnings Trend: CRTO's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: CRTO's earnings growth over the past year (68.7%) exceeds its 5-year average (5% per year).

Earnings vs Industry: CRTO earnings growth over the past year (68.7%) exceeded the Media industry 18.8%.

Return on Equity

High ROE: CRTO's Return on Equity (11.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Criteo's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CRTO's short term assets ($1.2B) exceed its short term liabilities ($612.5M).

Long Term Liabilities: CRTO's short term assets ($1.2B) exceed its long term liabilities ($100.3M).

Debt to Equity History and Analysis

Debt Level: CRTO has more cash than its total debt.

Reducing Debt: CRTO's debt to equity ratio has reduced from 10% to 0.3% over the past 5 years.

Debt Coverage: CRTO's debt is well covered by operating cash flow (5697%).

Interest Coverage: CRTO's interest payments on its debt are well covered by EBIT (116.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Criteo current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CRTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CRTO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CRTO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRTO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CRTO has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure

CEO

Megan Clarken (55 yo)

2.67yrs

Tenure

US$9,573,644

Compensation

Ms. Megan Clarken serves as Chief Executive Officer at Criteo S.A. since November 25, 2019 and serves as its Director since August 27, 2020. She served as Chief Commercial Officer for Nielsen Global Media...

CEO Compensation Analysis

Compensation vs Market: Megan's total compensation ($USD9.57M) is above average for companies of similar size in the US market ($USD5.56M).

Compensation vs Earnings: Megan's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CRTO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: CRTO's board of directors are considered experienced (5.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CRTO insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31