TWO HARBORS INVESTMENT CORP (TWO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWO - US90187B8046 - REIT
13.5 USD
-0.6 (-4.26%)
We assign a fundamental rating of 4 out of 10 to TWO. TWO was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year TWO was profitable.
- 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.
- Each year in the past 5 years TWO had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -2.23%, TWO is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
- 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.
- With a Return On Invested Capital value of 0.23%, TWO is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
| 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.
- In the last couple of years the Operating Margin of TWO has grown nicely.
- TWO has a Gross Margin of 42.34%. This is amongst the best in the industry. TWO outperforms 82.35% of its industry peers.
- TWO's Gross Margin has improved in the last couple of years.
| 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
- TWO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for TWO has been increased compared to 5 years ago.
- TWO has a better debt/assets ratio than last year.
2.2 Solvency
- TWO has an Altman-Z score of -1.11. This is a bad value and indicates that TWO is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -1.11, TWO is not doing good in the industry: 97.06% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 4.76 is on the high side and indicates that TWO has dependencies on debt financing.
- The Debt to Equity ratio of TWO (4.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.11 |
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 of 0.17. This is comparable to the rest of the industry: TWO outperforms 55.88% of its industry peers.
- A Quick Ratio of 0.17 indicates that TWO may have some problems paying 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.
- The earnings per share for TWO have been decreasing by -36.86% on average. This is quite bad
- The Revenue has grown by 11.13% in the past year. This is quite good.
- Measured over the past years, TWO shows a decrease in Revenue. The Revenue has been decreasing by -1.54% on average per year.
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
- Based on estimates for the next years, TWO will show a very strong growth in Earnings Per Share. The EPS will grow by 39.13% on average per year.
- 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 Year45.53%
Revenue Next 2Y26.44%
Revenue Next 3Y16.42%
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.
- 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
- With a Price/Earnings ratio of 12.50, TWO is valued correctly.
- TWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TWO is cheaper than 63.24% of the companies in the same industry.
- TWO is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- TWO is valuated reasonably with a Price/Forward Earnings ratio of 9.31.
- 61.76% of the companies in the same industry are more expensive than TWO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, TWO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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 TWO's earnings are expected to grow with 39.13% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y62.37%
EPS Next 3Y39.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.39%, TWO is a good candidate for dividend investing.
- TWO's Dividend Yield is comparable with the industry average which is at 11.01.
- TWO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
5.2 History
- The dividend of TWO decreases each year by -22.81%.
- TWO has been paying a dividend for at least 10 years, so it has 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%
NYSE:TWO (1/20/2026, 9:50:04 AM)
13.5
-0.6 (-4.26%)
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 Change-3.33%
Ins Owners1.14%
Ins Owner Change16.06%
Market Cap1.41B
Revenue(TTM)933.29M
Net Income(TTM)-242.81M
Analysts70.77
Price Target11.12 (-17.63%)
Short Float %6.86%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
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)8.29%
EPS NQ rev (3m)2.78%
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)4.96%
Revenue NY rev (3m)15.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 9.31 | ||
| P/S | 1.51 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY8%
EPS(NY)1.45
Fwd EY10.74%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.96
BVpS17.01
TBVpS17.01
PEG (NY)0.1
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 | -1.11 |
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 Year45.53%
Revenue Next 2Y26.44%
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 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 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 12.5 and the Price/Book (PB) ratio is 0.79.
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.