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.

Rewards

Trading at 50.5% below its fair value

Earnings are forecast to grow 5.54% per year

Risk Analysis

No risks detected for CRTO from our risk checks.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

CRTO

0.03%

US Media

0.6%

US Market


1 Year Return

-27.3%

CRTO

20.8%

US Media

20.8%

US Market

Return vs Industry: CRTO underperformed the US Media industry which returned 20.8% over the past year.

Return vs Market: CRTO underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

CRTOIndustryMarket
7 Day-1.8%0.03%0.6%
30 Day1.3%-0.7%2.5%
90 Day-12.1%-0.09%4.9%
1 Year-27.3%-27.3%22.4%20.8%23.5%20.8%
3 Year-57.8%-57.8%20.2%15.2%46.5%37.0%
5 Year-57.0%-57.0%34.3%23.8%64.6%46.5%

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 ($17.15) is trading below our estimate of fair value ($34.65)

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 (12.9x) compared to the Media industry average (13.7x).

PE vs Market: CRTO is good value based on its PE Ratio (12.9x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: CRTO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CRTO is good value based on its PB Ratio (1.1x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRTO's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CRTO's earnings (5.5% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: CRTO's revenue (0.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CRTO's revenue (0.3% 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 (-32.7%).


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%industryaverage2.0%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?

0.9yrs

Average management tenure


CEO

Megan Clarken 0

0.08yrs

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

0.9yrs

Average Tenure

50yo

Average Age

Experienced Management: CRTO's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: CRTO's board of directors are not considered experienced ( 2.8 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$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

    • Tenure: 0yrs
    • Compensation: US$6.62m
  • Benoit Fouilland (54yo)

    Chief Financial Officer

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

    Managing Director of Mobile Attribution

    • Tenure: 0yrs
  • Megan Clarken

    Chief Executive Officer

    • Tenure: 0.08yrs
  • Thomas Jeanjean

    General Manager of Platform

    • Tenure: 0.9yrs
  • Edouard Lassalle

    VP & Head of Investor Relations

    • Tenure: 0yrs
  • Ryan Damon (46yo)

    Executive VP

    • Tenure: 1.3yrs
  • Denis Collin

    Executive Vice President of People & Chief of Staff

    • Tenure: 0.9yrs
  • Diarmuid Gill

    Chief Technology Officer

    • Tenure: 0.9yrs
  • Isabelle Leung-Tack

    Vice-President of Global Communications

    • Tenure: 0.9yrs

Board Members

  • Steve Sadove (67yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Jim Warner (66yo)

    Lead Independent Director

    • Tenure: 6yrs
    • Compensation: US$319.11k
  • Greg Coleman (65yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • JB Rudelle (50yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: US$6.62m
  • John Costello (72yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Edmond Mesrobian (58yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$279.11k
  • Hubert de Pesquidoux (53yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$293.36k
  • Paul-François Fournier (51yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • Nathalie Balla (51yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$283.36k
  • Rachel Picard (52yo)

    Independent Director

    • Tenure: 2.5yrs
    • 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$1.099b
  • 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)YesADS EACH REPR 1 ORD SPONS EUR0.025USUSDOct 2013
CI5ADB (Deutsche Boerse AG)YesADS EACH REPR 1 ORD SPONS EUR0.025DEEUROct 2013
0I4TLSE (London Stock Exchange)YesADS EACH REPR 1 ORD SPONS EUR0.025GBUSDOct 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 dat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:18
End of Day Share Price2019/12/13 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.