TWO HARBORS INVESTMENT CORP (TWO) Fundamental Analysis & Valuation

NYSE:TWO • US90187B8046

Current stock price

11.22 USD
-0.18 (-1.58%)
At close:
11.2 USD
-0.02 (-0.18%)
After Hours:

This TWO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. TWO Profitability Analysis

1.1 Basic Checks

  • TWO had positive earnings in the past year.
  • In the past year TWO had a positive cash flow from operations.
  • In multiple years TWO reported negative net income over the last 5 years.
  • TWO had a positive operating cash flow in each of the past 5 years.
TWO Yearly Net Income VS EBIT VS OCF VS FCFTWO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B -1.5B

1.2 Ratios

  • TWO has a Return On Assets of -4.68%. This is amonst the worse of the industry: TWO underperforms 95.59% of its industry peers.
  • Looking at the Return On Equity, with a value of -28.44%, TWO is doing worse than 95.59% of the companies in the same industry.
Industry RankSector Rank
ROA -4.68%
ROE -28.44%
ROIC N/A
ROA(3y)-1.27%
ROA(5y)-0.27%
ROE(3y)-7.87%
ROE(5y)-2.09%
ROIC(3y)N/A
ROIC(5y)N/A
TWO Yearly ROA, ROE, ROICTWO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40

1.3 Margins

  • TWO's Gross Margin of 18.58% is on the low side compared to the rest of the industry. TWO is outperformed by 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of TWO has declined.
  • TWO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 18.58%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-29.82%
GM growth 5Y-32.85%
TWO Yearly Profit, Operating, Gross MarginsTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 100 150

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2

2. TWO Health Analysis

2.1 Basic Checks

  • TWO has more shares outstanding than it did 1 year ago.
  • TWO has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TWO has a worse debt to assets ratio.
TWO Yearly Shares OutstandingTWO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
TWO Yearly Total Debt VS Total AssetsTWO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of -1.26, we must say that TWO is in the distress zone and has some risk of bankruptcy.
  • TWO has a Altman-Z score of -1.26. This is amonst the worse of the industry: TWO underperforms 97.06% of its industry peers.
  • The Debt to FCF ratio of TWO is 96.24, which is on the high side as it means it would take TWO, 96.24 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 96.24, TWO is doing good in the industry, outperforming 64.71% of the companies in the same industry.
  • A Debt/Equity ratio of 4.79 is on the high side and indicates that TWO has dependencies on debt financing.
  • The Debt to Equity ratio of TWO (4.79) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 4.79
Debt/FCF 96.24
Altman-Z -1.26
ROIC/WACCN/A
WACCN/A
TWO Yearly LT Debt VS Equity VS FCFTWO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.16 indicates that TWO may have some problems paying its short term obligations.
  • TWO has a Current ratio of 0.16. This is comparable to the rest of the industry: TWO outperforms 58.82% of its industry peers.
  • TWO has a Quick Ratio of 0.16. This is a bad value and indicates that TWO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TWO's Quick ratio of 0.16 is in line compared to the rest of the industry. TWO outperforms 58.82% of its industry peers.
Industry RankSector Rank
Current Ratio 0.16
Quick Ratio 0.16
TWO Yearly Current Assets VS Current LiabilitesTWO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. TWO Growth Analysis

3.1 Past

  • TWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.27%, which is quite impressive.
  • Measured over the past years, TWO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.24% on average per year.
  • The Revenue for TWO has decreased by -60.58% in the past year. This is quite bad
  • The Revenue has been decreasing by -6.73% on average over the past years.
EPS 1Y (TTM)107.27%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%30%
Revenue 1Y (TTM)-60.58%
Revenue growth 3Y-6.73%
Revenue growth 5YN/A
Sales Q2Q%55.61%

3.2 Future

  • TWO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.17% yearly.
  • TWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y4.01%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.65%
Revenue Next 2Y10.63%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TWO Yearly Revenue VS EstimatesTWO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 500M -500M 1B -1B
TWO Yearly EPS VS EstimatesTWO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6 8

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5

4. TWO Valuation Analysis

4.1 Price/Earnings Ratio

  • TWO is valuated reasonably with a Price/Earnings ratio of 9.84.
  • Based on the Price/Earnings ratio, TWO is valued a bit cheaper than 66.18% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.89. TWO is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 9.46, the valuation of TWO can be described as reasonable.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TWO.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. TWO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.84
Fwd PE 9.46
TWO Price Earnings VS Forward Price EarningsTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 64.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.25
EV/EBITDA N/A
TWO Per share dataTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.45
PEG (5Y)N/A
EPS Next 2Y10.17%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. TWO Dividend Analysis

5.1 Amount

  • TWO has a Yearly Dividend Yield of 12.37%, which is a nice return.
  • TWO's Dividend Yield is slightly below the industry average, which is at 13.42.
  • Compared to an average S&P500 Dividend Yield of 1.89, TWO pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.37%

5.2 History

  • The dividend of TWO decreases each year by -12.03%.
  • TWO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.03%
Div Incr Years0
Div Non Decr Years0
TWO Yearly Dividends per shareTWO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60 80

5.3 Sustainability

  • TWO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.74%
EPS Next 2Y10.17%
EPS Next 3YN/A
TWO Yearly Income VS Free CF VS DividendTWO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B -1.5B

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TWO Fundamentals: All Metrics, Ratios and Statistics

TWO HARBORS INVESTMENT CORP

NYSE:TWO (3/27/2026, 8:04:00 PM)

After market: 11.2 -0.02 (-0.18%)

11.22

-0.18 (-1.58%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners73.77%
Inst Owner Change2.92%
Ins Owners1.04%
Ins Owner Change16.44%
Market Cap1.18B
Revenue(TTM)618.61M
Net Income(TTM)-508.40M
Analysts69.23
Price Target12.5 (11.41%)
Short Float %6.96%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 12.37%
Yearly Dividend2.13
Dividend Growth(5Y)-12.03%
DP-43.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-05
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.05%
Min EPS beat(2)-30.43%
Max EPS beat(2)-1.67%
EPS beat(4)0
Avg EPS beat(4)-23.3%
Min EPS beat(4)-37.05%
Max EPS beat(4)-1.67%
EPS beat(8)0
Avg EPS beat(8)-40.96%
EPS beat(12)0
Avg EPS beat(12)-60.16%
EPS beat(16)1
Avg EPS beat(16)-48.82%
Revenue beat(2)2
Avg Revenue beat(2)6.56%
Min Revenue beat(2)5.25%
Max Revenue beat(2)7.87%
Revenue beat(4)4
Avg Revenue beat(4)16.61%
Min Revenue beat(4)5.25%
Max Revenue beat(4)33.5%
Revenue beat(8)4
Avg Revenue beat(8)-19.31%
Revenue beat(12)4
Avg Revenue beat(12)-4460.38%
Revenue beat(16)7
Avg Revenue beat(16)-3088.62%
PT rev (1m)0%
PT rev (3m)12.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.39%
EPS NY rev (1m)-16.4%
EPS NY rev (3m)-18.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)15.81%
Valuation
Industry RankSector Rank
PE 9.84
Fwd PE 9.46
P/S 1.91
P/FCF 13.25
P/OCF 13.25
P/B 0.66
P/tB 0.66
EV/EBITDA N/A
EPS(TTM)1.14
EY10.16%
EPS(NY)1.19
Fwd EY10.57%
FCF(TTM)0.85
FCFY7.54%
OCF(TTM)0.85
OCFY7.54%
SpS5.89
BVpS17.02
TBVpS17.02
PEG (NY)2.45
PEG (5Y)N/A
Graham Number20.89
Profitability
Industry RankSector Rank
ROA -4.68%
ROE -28.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 18.58%
FCFM 14.37%
ROA(3y)-1.27%
ROA(5y)-0.27%
ROE(3y)-7.87%
ROE(5y)-2.09%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-29.82%
GM growth 5Y-32.85%
F-Score4
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 4.79
Debt/FCF 96.24
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.16
Quick Ratio 0.16
Altman-Z -1.26
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)107.27%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%30%
EPS Next Y4.01%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-60.58%
Revenue growth 3Y-6.73%
Revenue growth 5YN/A
Sales Q2Q%55.61%
Revenue Next Year22.65%
Revenue Next 2Y10.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-146.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-55.76%
FCF growth 3Y-47.75%
FCF growth 5Y-32.44%
OCF growth 1Y-55.76%
OCF growth 3Y-47.75%
OCF growth 5Y-32.44%

TWO HARBORS INVESTMENT CORP / TWO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TWO HARBORS INVESTMENT CORP?

ChartMill assigns a fundamental rating of 3 / 10 to TWO.


What is the valuation status of TWO HARBORS INVESTMENT CORP (TWO) stock?

ChartMill assigns a valuation rating of 5 / 10 to TWO HARBORS INVESTMENT CORP (TWO). This can be considered as Fairly Valued.


What is the profitability of TWO stock?

TWO HARBORS INVESTMENT CORP (TWO) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for TWO stock?

The Price/Earnings (PE) ratio for TWO HARBORS INVESTMENT CORP (TWO) is 9.84 and the Price/Book (PB) ratio is 0.66.


What is the financial health of TWO HARBORS INVESTMENT CORP (TWO) stock?

The financial health rating of TWO HARBORS INVESTMENT CORP (TWO) is 2 / 10.