📊 CRTO Key Takeaways
Is Criteo S.A. (CRTO) a Good Investment?
Criteo exhibits stagnant revenue growth (+0.6% YoY) paired with critically thin operating margins (2.4%) and anemic returns on capital (ROE 0.7%, ROA 0.4%), indicating structural profitability challenges in a competitive advertising tech market. While the balance sheet remains fortress-like with minimal debt and strong cash reserves, operational underperformance and reliance on share buybacks to inflate EPS mask deteriorating earnings quality.
Criteo shows solid underlying fundamentals with healthy gross profitability, double-digit operating margins, and strong free cash flow generation backed by a very clean balance sheet. However, revenue growth is nearly flat and net income declined slightly year over year, which suggests the business is executing efficiently but not currently delivering strong fundamental growth. The setup looks financially resilient, but the growth quality is mixed and needs clearer acceleration.
Why Buy Criteo S.A. Stock? CRTO Key Strengths
- Strong balance sheet with $320M cash, minimal $1.5M debt, and 0.00x debt-to-equity ratio
- Gross margin of 52.5% demonstrates pricing power and healthy core unit economics
- Exceptional interest coverage of 24.6x with no solvency risk
- Strong balance sheet with high cash reserves and almost no long-term debt
- Healthy profitability profile with 54.0% gross margin and 10.4% operating margin
- Robust cash generation with $311.24M operating cash flow and $208.50M free cash flow
CRTO Stock Risks: Criteo S.A. Investment Risks
- Revenue growth nearly flat (0.6% YoY) indicating loss of market share or secular decline in core business
- Operating margin of 2.4% and net margin of 1.8% are unsustainably thin with minimal profitability cushion
- ROE of 0.7% and ROA of 0.4% reveal severe capital inefficiency and poor return generation on $2.1B asset base
- EPS growth of 38.9% driven by buybacks rather than earnings growth, masking stagnant net income
- Free cash flow conversion of 3.6% on revenue is weak, suggesting limited investment capacity for growth
- Revenue growth of just 0.6% indicates limited business momentum
- Net income declined 3.2% year over year despite stable revenue, pointing to earnings pressure
- EPS growth significantly outpaced net income growth, which may indicate improvement driven more by share count effects than core expansion
Key Metrics to Watch
- Revenue growth acceleration/deceleration - critical inflection point for investor thesis
- Operating margin expansion - must improve from 2.4% to demonstrate operational leverage
- Return on Equity - 0.7% is distressingly low and should be monitored for improvement
- Free cash flow quality and sustainability relative to capital expenditure
- Competitive positioning in advertising tech space and customer concentration risk
- Revenue growth and contribution ex-TAC/gross profit trends
- Operating margin and free cash flow conversion
Criteo S.A. (CRTO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility.
CRTO Profit Margin, ROE & Profitability Analysis
CRTO vs Services Sector: How Criteo S.A. Compares
How Criteo S.A. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Criteo S.A. Stock Overvalued? CRTO Valuation Analysis 2026
Based on fundamental analysis, Criteo S.A. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Criteo S.A. Balance Sheet: CRTO Debt, Cash & Liquidity
CRTO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Criteo S.A.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $0.88 reflects profitable operations.
CRTO Revenue Growth, EPS Growth & YoY Performance
CRTO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $424.6M | $7.8M | $0.15 |
| Q2 2025 | $471.3M | $21.3M | $0.39 |
| Q1 2025 | $450.1M | $7.2M | $0.12 |
| Q3 2024 | $458.9M | $6.2M | $0.11 |
| Q2 2024 | $468.9M | -$2.9M | $-0.05 |
| Q1 2024 | $445.0M | $7.2M | $0.12 |
| Q3 2023 | $446.9M | -$6.4M | $0.10 |
| Q2 2023 | $468.9M | -$2.9M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Criteo S.A. Dividends, Buybacks & Capital Allocation
CRTO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Criteo S.A. (CIK: 0001576427)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRTO
What is the AI rating for CRTO?
Criteo S.A. (CRTO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRTO's key strengths?
Claude: Strong balance sheet with $320M cash, minimal $1.5M debt, and 0.00x debt-to-equity ratio. Gross margin of 52.5% demonstrates pricing power and healthy core unit economics. ChatGPT: Strong balance sheet with high cash reserves and almost no long-term debt. Healthy profitability profile with 54.0% gross margin and 10.4% operating margin.
What are the risks of investing in CRTO?
Claude: Revenue growth nearly flat (0.6% YoY) indicating loss of market share or secular decline in core business. Operating margin of 2.4% and net margin of 1.8% are unsustainably thin with minimal profitability cushion. ChatGPT: Revenue growth of just 0.6% indicates limited business momentum. Net income declined 3.2% year over year despite stable revenue, pointing to earnings pressure.
What is CRTO's revenue and growth?
Criteo S.A. reported revenue of $424.6M.
Does CRTO pay dividends?
Criteo S.A. does not currently pay dividends.
Where can I find CRTO SEC filings?
Official SEC filings for Criteo S.A. (CIK: 0001576427) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRTO's EPS?
Criteo S.A. has a diluted EPS of $0.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CRTO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Criteo S.A. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CRTO stock overvalued or undervalued?
Valuation metrics for CRTO: ROE of 0.7% (sector avg: 16%), net margin of 1.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CRTO stock in 2026?
Our dual AI analysis gives Criteo S.A. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRTO's free cash flow?
Criteo S.A.'s operating cash flow is $48.2M, with capital expenditures of $32.8M. FCF margin is 3.6%.
How does CRTO compare to other Services stocks?
Vs Services sector averages: Net margin 1.8% (avg: 10%), ROE 0.7% (avg: 16%), current ratio 1.28 (avg: 1.5).