TWO HARBORS INVESTMENT CORP (TWO) Fundamental Analysis & Valuation

NYSE:TWO • US90187B8046

10.01 USD
-0.05 (-0.5%)
Last: Mar 4, 2026, 02:21 PM
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This TWO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

TWO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 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. TWO Profitability Analysis

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.
  • The reported net income has been mixed in the past 5 years: TWO reported negative net income in multiple years.
  • Of the past 5 years TWO 4 years had a positive operating cash flow.
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

  • TWO's Return On Assets of -2.23% is on the low side compared to the rest of the industry. TWO is outperformed by 82.35% of its industry peers.
  • The Return On Equity of TWO (-13.70%) is worse than 83.82% of its industry peers.
  • With a Return On Invested Capital value of 0.23%, TWO is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
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.
  • The Operating Margin of TWO (2.96%) is worse 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 83.82% 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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1

2. TWO Health Analysis

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 -1.14, we must say that TWO is in the distress zone and has some risk of bankruptcy.
  • TWO has a Altman-Z score of -1.14. This is amonst the worse of the industry: TWO underperforms 95.59% of its industry peers.
  • TWO has a Debt/Equity ratio of 4.76. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 4.76, TWO is in line with its industry, outperforming 55.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.76
Debt/FCF N/A
Altman-Z -1.14
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.
  • TWO has a Current ratio of 0.17. This is comparable to the rest of the industry: TWO outperforms 58.82% of 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.
  • Looking at the Quick ratio, with a value of 0.17, TWO is in line with its industry, outperforming 58.82% of the companies in the same 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. 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.
  • 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

  • The Earnings Per Share is expected to grow by 13.99% on average over the next years. This is quite good.
  • Based on estimates for the next years, TWO will show a quite strong growth in Revenue. The Revenue will grow by 10.63% on average per year.
EPS Next Y24.42%
EPS Next 2Y13.99%
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

  • 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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6

4. TWO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.78 indicates a reasonable valuation of TWO.
  • 73.53% of the companies in the same industry are more expensive than TWO, based on the Price/Earnings ratio.
  • TWO is valuated cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 7.06, which indicates a rather cheap valuation of TWO.
  • Based on the Price/Forward Earnings ratio, TWO is valued cheaper than 82.35% of the companies in the same industry.
  • TWO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.95.
Industry RankSector Rank
PE 8.78
Fwd PE 7.06
TWO Price Earnings VS Forward Price EarningsTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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

  • 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 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
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. TWO Dividend Analysis

5.1 Amount

  • TWO has a Yearly Dividend Yield of 7.78%, which is a nice return.
  • With a Dividend Yield of 7.78, TWO pays less dividend than the industry average, which is at 11.21. 94.12% of the companies listed in the same industry pay a better dividend than TWO!
  • Compared to an average S&P500 Dividend Yield of 1.82, TWO pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.78%

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 Fundamentals: All Metrics, Ratios and Statistics

TWO HARBORS INVESTMENT CORP

NYSE:TWO (3/4/2026, 2:21:39 PM)

10.01

-0.05 (-0.5%)

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 Change2.92%
Ins Owners1.14%
Ins Owner Change16.3%
Market Cap1.05B
Revenue(TTM)N/A
Net Income(TTM)-242.81M
Analysts69.23
Price Target12.5 (24.88%)
Short Float %7.35%
Short Ratio1.95
Dividend
Industry RankSector Rank
Dividend Yield 7.78%
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)12.39%
PT rev (3m)12.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.29%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)11.68%
Valuation
Industry RankSector Rank
PE 8.78
Fwd PE 7.06
P/S 1.12
P/FCF N/A
P/OCF N/A
P/B 0.59
P/tB 0.59
EV/EBITDA N/A
EPS(TTM)1.14
EY11.39%
EPS(NY)1.42
Fwd EY14.17%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.9
BVpS16.9
TBVpS16.9
PEG (NY)0.36
PEG (5Y)N/A
Graham Number20.82
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 -1.14
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 Year22.65%
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 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 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 8.78 and the Price/Book (PB) ratio is 0.59.


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.