TWO HARBORS INV CORP - TWO 9 3/8 08/15/30 (TWOD) Stock Fundamental Analysis
USA - NYSE:TWOD - US90187B8871
25.43 USD
-0.03 (-0.12%)
We assign a fundamental rating of 3 out of 10 to TWOD. TWOD was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TWOD may be in some trouble as it scores bad on both profitability and health. TWOD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TWOD had positive earnings in the past year.
TWOD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TWOD reported negative net income in multiple years.
TWOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TWOD has a worse Return On Assets (-2.71%) than 79.10% of its industry peers.
With a Return On Equity value of -18.64%, TWOD is not doing good in the industry: 88.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.71% | ||
| ROE | -18.64% | ||
| ROIC | 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
1.3 Margins
TWOD's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of TWOD has grown nicely.
TWOD's Gross Margin of 13.76% is on the low side compared to the rest of the industry. TWOD is outperformed by 68.66% of its industry peers.
TWOD's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for TWOD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 13.76% |
OM growth 3Y-12.74%
OM growth 5Y2.85%
PM growth 3Y-8.93%
PM growth 5Y1.71%
GM growth 3Y-9.32%
GM growth 5Y7.66%
2. Health
2.1 Basic Checks
TWOD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TWOD has been increased compared to 5 years ago.
TWOD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.14, we must say that TWOD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.14, TWOD is not doing good in the industry: 95.52% of the companies in the same industry are doing better.
TWOD has a debt to FCF ratio of 36.73. This is a negative value and a sign of low solvency as TWOD would need 36.73 years to pay back of all of its debts.
TWOD has a Debt to FCF ratio of 36.73. This is in the better half of the industry: TWOD outperforms 74.63% of its industry peers.
TWOD has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
TWOD's Debt to Equity ratio of 5.40 is in line compared to the rest of the industry. TWOD outperforms 43.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 36.73 | ||
| Altman-Z | -1.14 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TWOD has a Current Ratio of 0.11. This is a bad value and indicates that TWOD is not financially healthy enough and could expect problems in meeting its short term obligations.
TWOD has a Current ratio (0.11) which is in line with its industry peers.
TWOD has a Quick Ratio of 0.11. This is a bad value and indicates that TWOD is not financially healthy enough and could expect problems in meeting its short term obligations.
TWOD has a Quick ratio of 0.11. This is comparable to the rest of the industry: TWOD outperforms 40.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 750.00% over the past year.
The earnings per share for TWOD have been decreasing by -36.86% on average. This is quite bad
TWOD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -54.30%.
Measured over the past years, TWOD shows a decrease in Revenue. The Revenue has been decreasing by -1.54% on average per year.
EPS 1Y (TTM)750%
EPS 3Y-44.86%
EPS 5Y-36.86%
EPS Q2Q%64.71%
Revenue 1Y (TTM)-54.3%
Revenue growth 3Y37.26%
Revenue growth 5Y-1.54%
Sales Q2Q%-102.59%
3.2 Future
Based on estimates for the next years, TWOD will show a very strong growth in Earnings Per Share. The EPS will grow by 45.86% on average per year.
TWOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.29% yearly.
EPS Next Y108.73%
EPS Next 2Y58.9%
EPS Next 3Y45.86%
EPS Next 5YN/A
Revenue Next Year35.44%
Revenue Next 2Y15.64%
Revenue Next 3Y7.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.92, the valuation of TWOD can be described as expensive.
TWOD's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TWOD is valued at the same level.
With a Price/Forward Earnings ratio of 18.31, TWOD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWOD indicates a slightly more expensive valuation: TWOD is more expensive than 70.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, TWOD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.92 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWOD indicates a somewhat cheap valuation: TWOD is cheaper than 76.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.56 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as TWOD's earnings are expected to grow with 45.86% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y58.9%
EPS Next 3Y45.86%
5. Dividend
5.1 Amount
TWOD has a Yearly Dividend Yield of 16.22%, which is a nice return.
Compared to an average industry Dividend Yield of 11.44, TWOD pays a better dividend. On top of this TWOD pays more dividend than 92.54% of the companies listed in the same industry.
TWOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.22% |
5.2 History
The dividend of TWOD decreases each year by -22.81%.
TWOD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-22.81%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
The earnings of TWOD are negative and hence is the payout ratio. TWOD will probably not be able to sustain this dividend level.
DP-67.29%
EPS Next 2Y58.9%
EPS Next 3Y45.86%
TWO HARBORS INV CORP - TWO 9 3/8 08/15/30
NYSE:TWOD (9/12/2025, 8:22:14 PM)
25.43
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners69.81%
Inst Owner ChangeN/A
Ins Owners0.86%
Ins Owner ChangeN/A
Market Cap2.65B
Analysts74.29
Price Target29.5 (16%)
Short Float %0.01%
Short Ratio0.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.22% |
Yearly Dividend2.27
Dividend Growth(5Y)-22.81%
DP-67.29%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.55%
Min EPS beat(2)-37.05%
Max EPS beat(2)-24.05%
EPS beat(4)0
Avg EPS beat(4)-41.72%
Min EPS beat(4)-61.58%
Max EPS beat(4)-24.05%
EPS beat(8)0
Avg EPS beat(8)-61.66%
EPS beat(12)0
Avg EPS beat(12)-63.4%
EPS beat(16)3
Avg EPS beat(16)-45.24%
Revenue beat(2)2
Avg Revenue beat(2)29.71%
Min Revenue beat(2)25.92%
Max Revenue beat(2)33.5%
Revenue beat(4)2
Avg Revenue beat(4)-5.13%
Min Revenue beat(4)-49.18%
Max Revenue beat(4)33.5%
Revenue beat(8)5
Avg Revenue beat(8)1246.68%
Revenue beat(12)8
Avg Revenue beat(12)44253.4%
Revenue beat(16)12
Avg Revenue beat(16)33418.4%
PT rev (1m)-6.32%
PT rev (3m)N/A
EPS NQ rev (1m)10.36%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-17.63%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.15%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.92 | ||
| Fwd PE | 18.31 | ||
| P/S | 3.96 | ||
| P/FCF | 9.56 | ||
| P/OCF | 9.56 | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.85
EY3.34%
EPS(NY)1.39
Fwd EY5.46%
FCF(TTM)2.66
FCFY10.46%
OCF(TTM)2.66
OCFY10.46%
SpS6.41
BVpS18.11
TBVpS18.11
PEG (NY)0.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.71% | ||
| ROE | -18.64% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 13.76% | ||
| FCFM | 41.47% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-12.74%
OM growth 5Y2.85%
PM growth 3Y-8.93%
PM growth 5Y1.71%
GM growth 3Y-9.32%
GM growth 5Y7.66%
F-Score3
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | 36.73 | ||
| 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 | 0.11 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | -1.14 |
F-Score3
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)750%
EPS 3Y-44.86%
EPS 5Y-36.86%
EPS Q2Q%64.71%
EPS Next Y108.73%
EPS Next 2Y58.9%
EPS Next 3Y45.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-54.3%
Revenue growth 3Y37.26%
Revenue growth 5Y-1.54%
Sales Q2Q%-102.59%
Revenue Next Year35.44%
Revenue Next 2Y15.64%
Revenue Next 3Y7.29%
Revenue Next 5YN/A
EBIT growth 1Y-169.06%
EBIT growth 3Y19.78%
EBIT growth 5Y1.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.34%
FCF growth 3Y-22%
FCF growth 5Y-28.24%
OCF growth 1Y-61.34%
OCF growth 3Y-22%
OCF growth 5Y-28.24%