TWO HARBORS INVESTMENT CORP (TWO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TWO • US90187B8046

11.04 USD
-0.9 (-7.54%)
At close: Feb 6, 2026
11.09 USD
+0.05 (+0.45%)
After Hours: 2/6/2026, 8:09:33 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, TWO scores 3 out of 10 in our fundamental rating. TWO was compared to 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TWO has a bad profitability rating. Also its financial health evaluation is rather negative. TWO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year TWO was profitable.
  • TWO had a negative operating cash flow in the past year.
  • In multiple years TWO reported negative net income over the last 5 years.
  • TWO had a positive operating cash flow in 4 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 0 500M -500M 1B -1B -1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -2.23%, TWO is doing worse than 80.00% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -13.70%, TWO is doing worse than 82.86% of the companies in the same industry.
  • TWO has a Return On Invested Capital of 0.23%. This is in the lower half of the industry: TWO underperforms 68.57% of its industry peers.
Industry RankSector Rank
ROA -2.23%
ROE -13.7%
ROIC 0.23%
ROA(3y)0.75%
ROA(5y)-1.08%
ROE(3y)4.44%
ROE(5y)-7.45%
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 0 -20 -40

1.3 Margins

  • In the last couple of years the Profit Margin of TWO has grown nicely.
  • TWO has a worse Operating Margin (2.96%) than 71.43% of its industry peers.
  • TWO's Operating Margin has improved in the last couple of years.
  • TWO has a better Gross Margin (42.34%) than 82.86% of its industry peers.
  • In the last couple of years the Gross Margin of TWO has grown nicely.
Industry RankSector Rank
OM 2.96%
PM (TTM) N/A
GM 42.34%
OM growth 3Y-12.76%
OM growth 5Y2.83%
PM growth 3Y-8.93%
PM growth 5Y1.71%
GM growth 3Y-9.32%
GM growth 5Y7.66%
TWO Yearly Profit, Operating, Gross MarginsTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • There is no outstanding debt for TWO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TWO Yearly Shares OutstandingTWO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of -1.13, we must say that TWO is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of -1.13, TWO is not doing good in the industry: 97.14% of the companies in the same industry are doing better.
  • TWO has a Debt/Equity ratio of 4.76. This is a high value indicating a heavy dependency on external financing.
  • TWO has a Debt to Equity ratio (4.76) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 4.76
Debt/FCF N/A
Altman-Z -1.13
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 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.17 indicates that TWO may have some problems paying its short term obligations.
  • With a Current ratio value of 0.17, TWO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
  • A Quick Ratio of 0.17 indicates that TWO may have some problems paying its short term obligations.
  • The Quick ratio of TWO (0.17) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.17
Quick Ratio 0.17
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 5B 10B 15B 20B 25B

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

4

3. Growth

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.
  • TWO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.24% yearly.
EPS 1Y (TTM)107.27%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%30%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
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 13.99% 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 Y24.42%
EPS Next 2Y13.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y10.63%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 accelerating.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.68, the valuation of TWO can be described as reasonable.
  • TWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TWO is cheaper than 67.14% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.92. TWO is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 7.78, which indicates a rather cheap valuation of TWO.
  • 67.14% of the companies in the same industry are more expensive than TWO, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. TWO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.68
Fwd PE 7.78
TWO Price Earnings VS Forward Price EarningsTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TWO Per share dataTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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.
  • TWO's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y13.99%
EPS Next 3YN/A

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

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 12.73%, TWO is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 11.86, TWO has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.83, TWO pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.73%

5.2 History

  • The dividend of TWO decreases each year by -22.81%.
  • TWO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-22.81%
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

  • The earnings of TWO are negative and hence is the payout ratio. TWO will probably not be able to sustain this dividend level.
DP-95.7%
EPS Next 2Y13.99%
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 0 500M -500M 1B -1B -1.5B

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TWO HARBORS INVESTMENT CORP

NYSE:TWO (2/6/2026, 8:09:33 PM)

After market: 11.09 +0.05 (+0.45%)

11.04

-0.9 (-7.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners70.4%
Inst Owner Change-3.52%
Ins Owners1.14%
Ins Owner Change16.06%
Market Cap1.15B
Revenue(TTM)N/A
Net Income(TTM)-242.81M
Analysts70.77
Price Target12.11 (9.69%)
Short Float %6.97%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 12.73%
Yearly Dividend2.27
Dividend Growth(5Y)-22.81%
DP-95.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-05
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.86%
Min EPS beat(2)-24.05%
Max EPS beat(2)-1.67%
EPS beat(4)0
Avg EPS beat(4)-26.75%
Min EPS beat(4)-44.22%
Max EPS beat(4)-1.67%
EPS beat(8)0
Avg EPS beat(8)-49.08%
EPS beat(12)0
Avg EPS beat(12)-61.9%
EPS beat(16)2
Avg EPS beat(16)-46.7%
Revenue beat(2)2
Avg Revenue beat(2)12.53%
Min Revenue beat(2)5.25%
Max Revenue beat(2)19.81%
Revenue beat(4)3
Avg Revenue beat(4)6.94%
Min Revenue beat(4)-30.77%
Max Revenue beat(4)33.5%
Revenue beat(8)3
Avg Revenue beat(8)-40.42%
Revenue beat(12)3
Avg Revenue beat(12)-4527.34%
Revenue beat(16)7
Avg Revenue beat(16)-3082.98%
PT rev (1m)0%
PT rev (3m)-2.8%
EPS NQ rev (1m)4.02%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)34.11%
Revenue NY rev (1m)4.96%
Revenue NY rev (3m)15.63%
Valuation
Industry RankSector Rank
PE 9.68
Fwd PE 7.78
P/S 1.23
P/FCF N/A
P/OCF N/A
P/B 0.65
P/tB 0.65
EV/EBITDA N/A
EPS(TTM)1.14
EY10.33%
EPS(NY)1.42
Fwd EY12.85%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.96
BVpS17.01
TBVpS17.01
PEG (NY)0.4
PEG (5Y)N/A
Graham Number20.89
Profitability
Industry RankSector Rank
ROA -2.23%
ROE -13.7%
ROCE 0.84%
ROIC 0.23%
ROICexc 0.25%
ROICexgc 0.26%
OM 2.96%
PM (TTM) N/A
GM 42.34%
FCFM N/A
ROA(3y)0.75%
ROA(5y)-1.08%
ROE(3y)4.44%
ROE(5y)-7.45%
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 3Y18.48%
ROICexgc growth 5Y28.02%
ROICexc growth 3Y18.89%
ROICexc growth 5Y27.71%
OM growth 3Y-12.76%
OM growth 5Y2.83%
PM growth 3Y-8.93%
PM growth 5Y1.71%
GM growth 3Y-9.32%
GM growth 5Y7.66%
F-Score4
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 4.76
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 0.05
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.17
Quick Ratio 0.17
Altman-Z -1.13
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 Y24.42%
EPS Next 2Y13.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%55.61%
Revenue Next Year8.76%
Revenue Next 2Y10.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y113.47%
EBIT growth 3Y19.75%
EBIT growth 5Y1.25%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-110.47%
FCF growth 3Y-22%
FCF growth 5Y-28.24%
OCF growth 1Y-110.47%
OCF growth 3Y-22%
OCF growth 5Y-28.24%

TWO HARBORS INVESTMENT CORP / TWO 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 3 / 10.


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

The Price/Earnings (PE) ratio for TWO HARBORS INVESTMENT CORP (TWO) is 9.68 and the Price/Book (PB) ratio is 0.65.


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

The financial health rating of TWO HARBORS INVESTMENT CORP (TWO) is 1 / 10.