TWO HARBORS INVESTMENT CORP (TWO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWO - US90187B8046 - REIT
12.39 USD
+0.11 (+0.9%)
12.39 USD
0 (0%)
Overall TWO gets a fundamental rating of 4 out of 10. We evaluated TWO against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of TWO while its profitability can be described as average. TWO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TWO had positive earnings in the past year.
- In the past year TWO has reported a negative cash flow from operations.
- In multiple years TWO reported negative net income over the last 5 years.
- In the past 5 years TWO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TWO (-2.23%) is worse than 79.41% of its industry peers.
- With a Return On Equity value of -13.70%, TWO is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
- TWO has a Return On Invested Capital of 0.23%. This is in the lower half of the industry: TWO underperforms 69.12% of its industry peers.
| Industry Rank | Sector 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
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 72.06% of its industry peers.
- TWO's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 42.34%, TWO belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
- In the last couple of years the Gross Margin of TWO has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, TWO has more shares outstanding
- Compared to 5 years ago, TWO has more shares outstanding
- TWO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -1.12, we must say that TWO is in the distress zone and has some risk of bankruptcy.
- TWO's Altman-Z score of -1.12 is on the low side compared to the rest of the industry. TWO is outperformed by 97.06% of its industry peers.
- A Debt/Equity ratio of 4.76 is on the high side and indicates that TWO has dependencies on debt financing.
- TWO has a Debt to Equity ratio (4.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.12 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.17 indicates that TWO may have some problems paying its short term obligations.
- TWO has a Current ratio (0.17) which is in line with its industry peers.
- TWO has a Quick Ratio of 0.17. 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 has a Quick ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
- TWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 350.00%, 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 -36.86% yearly.
- The Revenue has grown by 11.13% in the past year. This is quite good.
- The Revenue has been decreasing by -1.54% on average over the past years.
EPS 1Y (TTM)350%
EPS 3Y-44.86%
EPS 5Y-36.86%
EPS Q2Q%176.92%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y37.26%
Revenue growth 5Y-1.54%
Sales Q2Q%44.42%
3.2 Future
- The Earnings Per Share is expected to grow by 39.13% on average over the next years. This is a very strong growth
- TWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.
EPS Next Y125.87%
EPS Next 2Y62.37%
EPS Next 3Y39.13%
EPS Next 5YN/A
Revenue Next Year42.68%
Revenue Next 2Y22.49%
Revenue Next 3Y16.42%
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 11.47, the valuation of TWO can be described as reasonable.
- 64.71% of the companies in the same industry are more expensive than TWO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, TWO is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.54, which indicates a very decent valuation of TWO.
- Based on the Price/Forward Earnings ratio, TWO is valued a bit cheaper than the industry average as 66.18% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TWO to the average of the S&P500 Index (24.04), we can say TWO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- TWO's 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 39.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y62.37%
EPS Next 3Y39.13%
5. Dividend
5.1 Amount
- TWO has a Yearly Dividend Yield of 8.32%, which is a nice return.
- Compared to an average industry Dividend Yield of 10.90, TWO's dividend is way lower than its industry peers. On top of this 83.82% of the companies listed in the same industry pay a better dividend than TWO!
- TWO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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
5.3 Sustainability
- TWO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-95.7%
EPS Next 2Y62.37%
EPS Next 3Y39.13%
12.39
+0.11 (+0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners70.4%
Inst Owner Change0.23%
Ins Owners1.14%
Ins Owner Change16.13%
Market Cap1.29B
Revenue(TTM)933.29M
Net Income(TTM)-242.81M
Analysts70.77
Price Target11.12 (-10.25%)
Short Float %8.56%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
Yearly Dividend2.27
Dividend Growth(5Y)-22.81%
DP-95.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-05 2026-01-05 (0.34)
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)-0.15%
PT rev (3m)-4.53%
EPS NQ rev (1m)4.11%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)1.65%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)15.15%
Revenue NQ rev (3m)34.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)11.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 8.54 | ||
| P/S | 1.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY8.72%
EPS(NY)1.45
Fwd EY11.7%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.96
BVpS17.01
TBVpS17.01
PEG (NY)0.09
PEG (5Y)N/A
Graham Number20.33
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -1.12 |
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)350%
EPS 3Y-44.86%
EPS 5Y-36.86%
EPS Q2Q%176.92%
EPS Next Y125.87%
EPS Next 2Y62.37%
EPS Next 3Y39.13%
EPS Next 5YN/A
Revenue 1Y (TTM)11.13%
Revenue growth 3Y37.26%
Revenue growth 5Y-1.54%
Sales Q2Q%44.42%
Revenue Next Year42.68%
Revenue Next 2Y22.49%
Revenue Next 3Y16.42%
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 4 / 10 to TWO.
What is the valuation status of TWO HARBORS INVESTMENT CORP (TWO) stock?
ChartMill assigns a valuation rating of 6 / 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 4 / 10.
Can you provide the PE and PB ratios for TWO stock?
The Price/Earnings (PE) ratio for TWO HARBORS INVESTMENT CORP (TWO) is 11.47 and the Price/Book (PB) ratio is 0.73.
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.