TWO HARBORS INVESTMENT CORP (TWO) Fundamental Analysis & Valuation

NYSE:TWO • US90187B8046

Current stock price

10.745 USD
-0.03 (-0.23%)
Last:

This TWO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. TWO Profitability Analysis

1.1 Basic Checks

  • In the past year TWO was profitable.
  • TWO had a positive operating cash flow in the past year.
  • 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.
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 2025 0 500M -500M 1B -1B -1.5B

1.2 Ratios

  • TWO has a worse Return On Assets (-4.68%) than 95.59% of its industry peers.
  • TWO has a worse Return On Equity (-28.44%) than 95.59% of its industry peers.
Industry RankSector Rank
ROA -4.68%
ROE -28.44%
ROIC N/A
ROA(3y)-1.27%
ROA(5y)-0.27%
ROE(3y)-7.87%
ROE(5y)-2.09%
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 2025 0 -20 -40

1.3 Margins

  • TWO has a worse Gross Margin (18.58%) than 75.00% of its industry peers.
  • TWO's Gross Margin has declined in the last couple of years.
  • TWO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 18.58%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-29.82%
GM growth 5Y-32.85%
TWO Yearly Profit, Operating, Gross MarginsTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 100 150

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2

2. TWO Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, TWO has more shares outstanding
  • Compared to 5 years ago, TWO has more shares outstanding
  • The debt/assets ratio for TWO is higher compared to a year ago.
TWO Yearly Shares OutstandingTWO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B

2.2 Solvency

  • TWO has an Altman-Z score of -1.26. This is a bad value and indicates that TWO is not financially healthy and even has some risk of bankruptcy.
  • TWO has a Altman-Z score of -1.26. This is amonst the worse of the industry: TWO underperforms 97.06% of its industry peers.
  • The Debt to FCF ratio of TWO is 96.24, which is on the high side as it means it would take TWO, 96.24 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 96.24, TWO is doing good in the industry, outperforming 63.24% of the companies in the same industry.
  • A Debt/Equity ratio of 4.79 is on the high side and indicates that TWO has dependencies on debt financing.
  • TWO has a Debt to Equity ratio (4.79) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 4.79
Debt/FCF 96.24
Altman-Z -1.26
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 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.16 indicates that TWO may have some problems paying its short term obligations.
  • With a Current ratio value of 0.16, TWO perfoms like the industry average, outperforming 51.47% of the companies in the same industry.
  • TWO has a Quick Ratio of 0.16. 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 of 0.16. This is comparable to the rest of the industry: TWO outperforms 51.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.16
Quick Ratio 0.16
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 2025 5B 10B 15B 20B 25B

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

5

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.
  • Looking at the last year, TWO shows a very negative growth in Revenue. The Revenue has decreased by -60.58% in the last year.
  • Measured over the past years, TWO shows a decrease in Revenue. The Revenue has been decreasing by -6.73% on average per year.
EPS 1Y (TTM)107.27%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%30%
Revenue 1Y (TTM)-60.58%
Revenue growth 3Y-6.73%
Revenue growth 5YN/A
Sales Q2Q%55.61%

3.2 Future

  • Based on estimates for the next years, TWO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.17% on average per year.
  • 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 Y4.01%
EPS Next 2Y10.17%
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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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. TWO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.43, which indicates a very decent valuation of TWO.
  • TWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TWO is cheaper than 69.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.73, TWO is valued rather cheaply.
  • TWO is valuated reasonably with a Price/Forward Earnings ratio of 9.06.
  • 63.24% 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 23.72. TWO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.43
Fwd PE 9.06
TWO Price Earnings VS Forward Price EarningsTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 70.59% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.69
EV/EBITDA N/A
TWO Per share dataTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.35
PEG (5Y)N/A
EPS Next 2Y10.17%
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 7.88%, which is a nice return.
  • With a Dividend Yield of 7.88, TWO pays less dividend than the industry average, which is at 11.19. 89.71% of the companies listed in the same industry pay a better dividend than TWO!
  • Compared to an average S&P500 Dividend Yield of 1.91, TWO pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.88%

5.2 History

  • The dividend of TWO decreases each year by -12.03%.
  • TWO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-12.03%
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

  • TWO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.74%
EPS Next 2Y10.17%
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 2025 0 500M -500M 1B -1B -1.5B

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TWO Fundamentals: All Metrics, Ratios and Statistics

TWO HARBORS INVESTMENT CORP

NYSE:TWO (3/20/2026, 10:00:06 AM)

10.745

-0.03 (-0.23%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners73.77%
Inst Owner Change2.92%
Ins Owners1.04%
Ins Owner Change16.3%
Market Cap1.13B
Revenue(TTM)618.61M
Net Income(TTM)-508.40M
Analysts69.23
Price Target12.5 (16.33%)
Short Float %6.96%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 7.88%
Yearly Dividend2.13
Dividend Growth(5Y)-12.03%
DP-43.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-05
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.05%
Min EPS beat(2)-30.43%
Max EPS beat(2)-1.67%
EPS beat(4)0
Avg EPS beat(4)-23.3%
Min EPS beat(4)-37.05%
Max EPS beat(4)-1.67%
EPS beat(8)0
Avg EPS beat(8)-40.96%
EPS beat(12)0
Avg EPS beat(12)-60.16%
EPS beat(16)1
Avg EPS beat(16)-48.82%
Revenue beat(2)2
Avg Revenue beat(2)6.56%
Min Revenue beat(2)5.25%
Max Revenue beat(2)7.87%
Revenue beat(4)4
Avg Revenue beat(4)16.61%
Min Revenue beat(4)5.25%
Max Revenue beat(4)33.5%
Revenue beat(8)4
Avg Revenue beat(8)-19.31%
Revenue beat(12)4
Avg Revenue beat(12)-4460.38%
Revenue beat(16)7
Avg Revenue beat(16)-3088.62%
PT rev (1m)3.16%
PT rev (3m)12.21%
EPS NQ rev (1m)-8.05%
EPS NQ rev (3m)-18.61%
EPS NY rev (1m)-16.4%
EPS NY rev (3m)-16.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)29.05%
Revenue NY rev (1m)15.22%
Revenue NY rev (3m)15.81%
Valuation
Industry RankSector Rank
PE 9.43
Fwd PE 9.06
P/S 1.82
P/FCF 12.69
P/OCF 12.69
P/B 0.63
P/tB 0.63
EV/EBITDA N/A
EPS(TTM)1.14
EY10.61%
EPS(NY)1.19
Fwd EY11.04%
FCF(TTM)0.85
FCFY7.88%
OCF(TTM)0.85
OCFY7.88%
SpS5.89
BVpS17.02
TBVpS17.02
PEG (NY)2.35
PEG (5Y)N/A
Graham Number20.89
Profitability
Industry RankSector Rank
ROA -4.68%
ROE -28.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 18.58%
FCFM 14.37%
ROA(3y)-1.27%
ROA(5y)-0.27%
ROE(3y)-7.87%
ROE(5y)-2.09%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-29.82%
GM growth 5Y-32.85%
F-Score4
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 4.79
Debt/FCF 96.24
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 0.16
Quick Ratio 0.16
Altman-Z -1.26
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 Y4.01%
EPS Next 2Y10.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-60.58%
Revenue growth 3Y-6.73%
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 1Y-146.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-55.76%
FCF growth 3Y-47.75%
FCF growth 5Y-32.44%
OCF growth 1Y-55.76%
OCF growth 3Y-47.75%
OCF growth 5Y-32.44%

TWO HARBORS INVESTMENT CORP / TWO Fundamental Analysis 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 2 / 10.


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

The Price/Earnings (PE) ratio for TWO HARBORS INVESTMENT CORP (TWO) is 9.43 and the Price/Book (PB) ratio is 0.63.


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.