NasdaqGS:CRTO

Stock Analysis Report

Executive Summary

Criteo S.A., a technology company, provides an advertising platform for the open Internet in France and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Criteo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.6%

CRTO

-3.6%

US Media

-1.3%

US Market


1 Year Return

-40.5%

CRTO

25.5%

US Media

22.0%

US Market

Return vs Industry: CRTO underperformed the US Media industry which returned 29.5% over the past year.

Return vs Market: CRTO underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CRTOIndustryMarket
7 Day5.6%-3.6%-1.3%
30 Day-14.0%-0.3%1.6%
90 Day-27.2%2.9%8.9%
1 Year-40.5%-40.5%27.3%25.5%24.7%22.0%
3 Year-66.8%-66.8%15.4%10.7%49.4%39.7%
5 Year-62.0%-62.0%47.0%35.2%78.1%58.5%

Price Volatility Vs. Market

How volatile is Criteo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Criteo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRTO ($15.29) is trading below our estimate of fair value ($37.71)

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


Price To Earnings Ratio

PE vs Industry: CRTO is good value based on its PE Ratio (11.5x) compared to the Media industry average (14.4x).

PE vs Market: CRTO is good value based on its PE Ratio (11.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CRTO is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: CRTO is good value based on its PB Ratio (1x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is Criteo forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRTO's forecast earnings growth (4% per year) is above the savings rate (1.7%).

Earnings vs Market: CRTO's earnings (4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CRTO's revenue (0.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CRTO's revenue (0.9% 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 (11.3%).


Next Steps

Past Performance

How has Criteo performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRTO has high quality earnings.

Growing Profit Margin: CRTO's current net profit margins (3.8%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: CRTO's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: CRTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRTO had negative earnings growth (-16.4%) over the past year, making it difficult to compare to the Media industry average (-30.3%).


Return on Equity

High ROE: CRTO's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Criteo's financial position?


Financial Position Analysis

Short Term Liabilities: CRTO's short term assets ($859.3M) exceed its short term liabilities ($528.4M).

Long Term Liabilities: CRTO's short term assets ($859.3M) exceed its long term liabilities ($159.1M).


Debt to Equity History and Analysis

Debt Level: CRTO's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: CRTO's debt to equity ratio has reduced from 3.6% to 0.4% over the past 5 years.

Debt Coverage: CRTO's debt is well covered by operating cash flow (6617.2%).

Interest Coverage: CRTO's interest payments on its debt are well covered by EBIT (1259.8x coverage).


Balance Sheet

Inventory Level: CRTO has a high level of physical assets or inventory.

Debt Coverage by Assets: CRTO's debt is covered by short term assets (assets are 228.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRTO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Criteo's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Megan Clarken 0

0.2yrs

Tenure

0

Ms. Megan Clarken is CEO at Criteo S.A. since November 25, 2019. She served as Chief Commercial Officer for Nielsen Global Media at ACNielsen Corporation since January 2019. She served as the Chief Commerc ...


Management Age and Tenure

1.0yrs

Average Tenure

50yo

Average Age

Experienced Management: CRTO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: CRTO's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$22330 Dec 19
Jean-Baptiste Rudelle
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares13
Max PriceUS$17.13
SellUS$12,36130 Oct 19
Jean-Baptiste Rudelle
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares611
Max PriceUS$20.24
SellUS$26401 Oct 19
Jean-Baptiste Rudelle
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares14
Max PriceUS$18.86
SellUS$510,25506 Aug 19
Dan Teodosiu
EntityIndividual
Shares26,237
Max PriceUS$19.52
SellUS$12,12531 Jul 19
Jean-Baptiste Rudelle
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares663
Max PriceUS$18.29
SellUS$3,72602 Jul 19
Jean-Baptiste Rudelle
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares217
Max PriceUS$17.17
SellUS$26,71802 Jul 19
Mollie Spilman
EntityIndividual
Shares1,567
Max PriceUS$17.05
SellUS$272,00026 Feb 19
Dan Teodosiu
EntityIndividual
Shares10,000
Max PriceUS$27.20
SellUS$22,47320 Feb 19
Mollie Spilman
EntityIndividual
Shares820
Max PriceUS$27.41
SellUS$13,45730 Jan 19
Mollie Spilman
EntityIndividual
Shares553
Max PriceUS$24.33

Ownership Breakdown

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


Management Team

  • JB Rudelle (50yo)

    Co-Founder & Chairman

    • Compensation: US$6.62m
  • Benoit Fouilland (54yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
    • Compensation: US$3.10m
  • David Philippson

    Managing Director of Mobile Attribution

    • Megan Clarken

      Chief Executive Officer

      • Tenure: 0.2yrs
    • Thomas Jeanjean

      General Manager of Platform

      • Tenure: 1yrs
    • Edouard Lassalle

      VP & Head of Investor Relations

      • Ryan Damon (46yo)

        Executive VP

        • Tenure: 1.3yrs
      • Denis Collin

        Executive Vice President of People & Chief of Staff

        • Tenure: 1yrs
      • Diarmuid Gill

        Chief Technology Officer

        • Tenure: 1yrs
      • Isabelle Leung-Tack

        Vice-President of Global Communications

        • Tenure: 1yrs

      Board Members

      • Steve Sadove (67yo)

        Member of Advisory Board

        • Jim Warner (66yo)

          Lead Independent Director

          • Tenure: 6.1yrs
          • Compensation: US$319.11k
        • Greg Coleman (65yo)

          Member of Advisory Board

          • JB Rudelle (50yo)

            Co-Founder & Chairman

            • Compensation: US$6.62m
          • John Costello (72yo)

            Member of Advisory Board

            • Edmond Mesrobian (58yo)

              Independent Director

              • Tenure: 2.9yrs
              • Compensation: US$279.11k
            • Hubert de Pesquidoux (53yo)

              Independent Director

              • Tenure: 7.3yrs
              • Compensation: US$293.36k
            • Paul-François Fournier (51yo)

              Member of Advisory Board

              • Nathalie Balla (51yo)

                Independent Director

                • Tenure: 2.6yrs
                • Compensation: US$283.36k
              • Rachel Picard (52yo)

                Independent Director

                • Tenure: 2.6yrs
                • Compensation: US$411.52k

              Company Information

              Criteo S.A.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Criteo S.A.
              • Ticker: CRTO
              • Exchange: NasdaqGS
              • Founded: 2005
              • Industry: Advertising
              • Sector: Media
              • Market Cap: US$948.351m
              • Shares outstanding: 64.08m
              • Website: https://www.criteo.com

              Number of Employees


              Location

              • Criteo S.A.
              • 32, rue Blanche
              • Paris
              • Ile-de-France
              • 75009
              • France

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              CRTONasdaqGS (Nasdaq Global Select)YesSPONS ADSUSUSDOct 2013
              CI5ADB (Deutsche Boerse AG)YesSPONS ADSDEEUROct 2013
              0I4TLSE (London Stock Exchange)YesSPONS ADSGBUSDOct 2013

              Biography

              Criteo S.A., a technology company, provides an advertising platform for the open Internet in France and internationally. The company’s Criteo Shopper Graph, which collects clients' proprietary commerce data, such as transaction activity on their digital properties. Its Criteo AI Engine solutions include Lookalike finder algorithms; recommendation algorithms; 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 platform to enhance the capabilities and effectiveness of prediction models. The company also provides real-time access to advertising inventory through its publisher partners. In addition, it offers its advertiser clients an integrated and modular customer platform that provides control, visibility, and detailed transparency on campaigns of business and marketing; and consulting services in business intelligence and analytics. Further, the company offers 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, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their traffic and audiences through personalized ads, either on their own digital property or on the open Internet. It serves companies in the digital retail, travel, and classifieds industries. The company was founded in 2005 and is headquartered in Paris, France. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/26 00:44
              End of Day Share Price2020/01/24 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.