TWO HARBORS INVESTMENT CORP (TWO) Fundamental Analysis & Valuation

NYSE:TWO • US90187B8046

Current stock price

11.545 USD
+0.54 (+4.86%)
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

  • TWO had positive earnings in the past year.
  • In the past year TWO had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: TWO reported negative net income in multiple years.
  • TWO had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of -4.68% is on the low side compared to the rest of the industry. TWO is outperformed by 95.59% of its industry peers.
  • TWO has a Return On Equity of -28.44%. This is amonst the worse of the industry: TWO underperforms 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

  • Looking at the Gross Margin, with a value of 18.58%, TWO is doing worse than 75.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TWO has declined.
  • 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
  • The number of shares outstanding for TWO has been increased compared to 5 years ago.
  • 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

  • Based on the Altman-Z score of -1.26, we must say that TWO is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of TWO (-1.26) is worse than 97.06% of its industry peers.
  • TWO has a debt to FCF ratio of 96.24. This is a negative value and a sign of low solvency as TWO would need 96.24 years to pay back of all of its debts.
  • The Debt to FCF ratio of TWO (96.24) is better than 64.71% of its industry peers.
  • TWO has a Debt/Equity ratio of 4.79. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of TWO (4.79) 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

  • TWO has a Current 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 Current ratio (0.16) which is comparable to the rest of the 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.
  • Looking at the Quick ratio, with a value of 0.16, TWO is in line with its industry, outperforming 57.35% of the companies in the same industry.
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 67.57%, 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.
  • The Revenue for TWO has decreased by -45.68% in the past year. This is quite bad
  • TWO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.73% yearly.
EPS 1Y (TTM)67.57%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%41.67%
Revenue 1Y (TTM)-45.68%
Revenue growth 3Y-6.73%
Revenue growth 5YN/A
Sales Q2Q%67.98%

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 8.55% on average per year.
  • TWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y-6.97%
EPS Next 2Y8.55%
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

  • Based on the Price/Earnings ratio of 9.31, the valuation of TWO can be described as reasonable.
  • TWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TWO is cheaper than 73.53% of the companies in the same industry.
  • TWO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
  • The Price/Forward Earnings ratio is 8.59, 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 69.12% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. TWO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.31
Fwd PE 8.59
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

  • TWO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TWO is cheaper than 70.59% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.62
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

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.55%
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

  • With a Yearly Dividend Yield of 12.81%, TWO is a good candidate for dividend investing.
  • TWO's Dividend Yield is comparable with the industry average which is at 12.49.
  • TWO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 12.81%

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 2Y8.55%
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 (4/29/2026, 2:36:59 PM)

11.545

+0.54 (+4.86%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Industry Strength39.75
Industry Growth77.02
Earnings (Last)04-28
Earnings (Next)N/A
Inst Owners73.99%
Inst Owner Change0.02%
Ins Owners0.99%
Ins Owner Change16.44%
Market Cap1.21B
Revenue(TTM)618.61M
Net Income(TTM)-508.40M
Analysts52.5
Price Target12.06 (4.46%)
Short Float %4.52%
Short Ratio1.3
Dividend
Industry RankSector Rank
Dividend Yield 12.81%
Yearly Dividend2.13
Dividend Growth(5Y)-12.03%
DP-43.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-02
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)-3.47%
PT rev (3m)8.49%
EPS NQ rev (1m)-5.11%
EPS NQ rev (3m)-25.41%
EPS NY rev (1m)-10.56%
EPS NY rev (3m)-26.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.85%
Valuation
Industry RankSector Rank
PE 9.31
Fwd PE 8.59
P/S 1.96
P/FCF 13.62
P/OCF 13.62
P/B 0.68
P/tB 0.68
EV/EBITDA N/A
EPS(TTM)1.24
EY10.74%
EPS(NY)1.34
Fwd EY11.64%
FCF(TTM)0.85
FCFY7.34%
OCF(TTM)0.85
OCFY7.34%
SpS5.9
BVpS17.05
TBVpS17.05
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.8077 (88.89%)
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)67.57%
EPS 3Y-23.03%
EPS 5Y-18.24%
EPS Q2Q%41.67%
EPS Next Y-6.97%
EPS Next 2Y8.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-45.68%
Revenue growth 3Y-6.73%
Revenue growth 5YN/A
Sales Q2Q%67.98%
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 for TWO stock?

ChartMill assigns a valuation rating of 5 / 10 to TWO HARBORS INVESTMENT CORP (TWO). This can be considered as Fairly Valued.


How profitable is TWO HARBORS INVESTMENT CORP (TWO) stock?

TWO HARBORS INVESTMENT CORP (TWO) has a profitability rating of 2 / 10.


Can you provide the expected EPS growth for TWO stock?

The Earnings per Share (EPS) of TWO HARBORS INVESTMENT CORP (TWO) is expected to decline by -6.97% in the next year.


How sustainable is the dividend of TWO HARBORS INVESTMENT CORP (TWO) stock?

The dividend rating of TWO HARBORS INVESTMENT CORP (TWO) is 4 / 10 and the dividend payout ratio is -43.74%.