SAP CEO Says Europe Needs More Applied AI, Not Another Stargate
'Is it really that we need to build five data centers and put great chips in there? Is this what Europe needs? I doubt it,' SAP SE CEO Christian Klein said Thursday in a call with journalists from his offices in Walldorf, Germany.
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Renewable Firms Rush to Secure German Projects as Mood Shifts
Developers of renewable energy are rushing to lock in German projects as Berlin's tone on the green transition shifts, sparking worries that strong government support may start to dwindle. High participation at two recent clean energy auctions shows that demand for such projects remains strong, the Federal Network Agency said Thursday. Yet analysts see the rush as a sign that companies are heeding the messages of conservative Chancellor Friedrich Merz's new government, which wants to put the brakes on the country's rapid renewable expansion.
Yahoo
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Is The Market Rewarding Dianomi plc (LON:DNM) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
It is hard to get excited after looking at Dianomi's (LON:DNM) recent performance, when its stock has declined 27% over the past three months. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. Specifically, we decided to study Dianomi's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dianomi is: 5.0% = UK£419k ÷ UK£8.4m (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.05 in profit. Check out our latest analysis for Dianomi We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. On the face of it, Dianomi's ROE is not much to talk about. Next, when compared to the average industry ROE of 9.9%, the company's ROE leaves us feeling even less enthusiastic. For this reason, Dianomi's five year net income decline of 32% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. Such as - low earnings retention or poor allocation of capital. That being said, we compared Dianomi's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 29% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Dianomi's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Because Dianomi doesn't pay any regular dividends, we infer that it is retaining all of its profits, which is rather perplexing when you consider the fact that there is no earnings growth to show for it. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating. In total, we're a bit ambivalent about Dianomi's performance. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. You can see the 1 risk we have identified for Dianomi by visiting our risks dashboard for free on our platform here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $384.84 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
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French Yields Are Exceeding Italy's in New Europe Bond Hierarchy
Lingering political risks have pushed French five-year bonds to the brink of becoming the highest-yielding in the euro region, and attention is now turning to how soon the rates on 10-year securities will do the same. The yield on benchmark five-year securities this week closed above those on comparable Italian notes for the first time since 2005. It means French notes now offer the highest yield of any major euro area borrower in this tenor, and second only to Latvia across the whole bloc.
