We assign a fundamental rating of 7 out of 10 to CRTO. CRTO was compared to 92 industry peers in the Media industry. CRTO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CRTO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make CRTO a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CRTO had positive earnings in the past year.
In the past year CRTO had a positive cash flow from operations.
CRTO had positive earnings in each of the past 5 years.
CRTO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of CRTO (8.15%) is better than 92.39% of its industry peers.
The Return On Equity of CRTO (14.86%) is better than 84.78% of its industry peers.
The Return On Invested Capital of CRTO (12.83%) is better than 93.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRTO is in line with the industry average of 7.07%.
The last Return On Invested Capital (12.83%) for CRTO is above the 3 year average (5.66%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	8.15%
ROE	14.86%
ROIC	12.83%

ROA(3y)2.5%

ROA(5y)3.63%

ROE(3y)5.48%

ROE(5y)6.88%

ROIC(3y)5.66%

ROIC(5y)6.99%

1.3 Margins

CRTO has a better Profit Margin (8.59%) than 81.52% of its industry peers.
CRTO's Profit Margin has improved in the last couple of years.
CRTO's Operating Margin of 11.63% is fine compared to the rest of the industry. CRTO outperforms 69.57% of its industry peers.
In the last couple of years the Operating Margin of CRTO has grown nicely.
Looking at the Gross Margin, with a value of 53.81%, CRTO is in the better half of the industry, outperforming 64.13% of the companies in the same industry.
CRTO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	11.63%
PM (TTM)	8.59%
GM	53.81%

OM growth 3Y0.28%

OM growth 5Y3.86%

PM growth 3Y-1.1%

PM growth 5Y7.55%

GM growth 3Y13.6%

GM growth 5Y6.76%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRTO is creating some value.
The number of shares outstanding for CRTO has been reduced compared to 1 year ago.
CRTO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CRTO is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.58 indicates that CRTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CRTO (2.58) is better than 79.35% of its industry peers.
The Debt to FCF ratio of CRTO is 0.04, which is an excellent value as it means it would take CRTO, only 0.04 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.04, CRTO belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that CRTO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, CRTO belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0.04
Altman-Z	2.58

ROIC/WACC1.55

WACC8.27%

2.3 Liquidity

CRTO has a Current Ratio of 1.33. This is a normal value and indicates that CRTO is financially healthy and should not expect problems in meeting its short term obligations.
CRTO has a Current ratio (1.33) which is in line with its industry peers.
A Quick Ratio of 1.33 indicates that CRTO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, CRTO perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The current and quick ratio evaluation for CRTO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.33
Quick Ratio	1.33

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.51% over the past year.
CRTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.28% yearly.
CRTO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.53%.
The Revenue has been decreasing by -3.09% on average over the past years.

EPS 1Y (TTM)16.51%

EPS 3Y10.74%

EPS 5Y11.28%

EPS Q2Q%36.46%

Revenue 1Y (TTM)0.53%

Revenue growth 3Y-4.99%

Revenue growth 5Y-3.09%

Sales Q2Q%8.28%

3.2 Future

CRTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
The Revenue is expected to grow by 3.64% on average over the next years.

EPS Next Y4.22%

EPS Next 2Y2.19%

EPS Next 3Y4.45%

EPS Next 5YN/A

Revenue Next Year5.1%

Revenue Next 2Y3.29%

Revenue Next 3Y7.2%

Revenue Next 5Y3.64%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 3.99, which indicates a rather cheap valuation of CRTO.
Based on the Price/Earnings ratio, CRTO is valued cheaply inside the industry as 96.74% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.21, CRTO is valued rather cheaply.
The Price/Forward Earnings ratio is 4.23, which indicates a rather cheap valuation of CRTO.
Based on the Price/Forward Earnings ratio, CRTO is valued cheaper than 92.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. CRTO is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	3.99
Fwd PE	4.23

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRTO indicates a rather cheap valuation: CRTO is cheaper than 96.74% of the companies listed in the same industry.
CRTO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRTO is cheaper than 88.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	4.67
EV/EBITDA	2.16

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRTO has an outstanding profitability rating, which may justify a higher PE ratio.