TWO HARBORS INVESTMENT CORP (TWO) Fundamental Analysis & Valuation

NYSE:TWO • US90187B8046

Current stock price

10.71 USD
-0.06 (-0.56%)
At close:
10.7987 USD
+0.09 (+0.83%)
After Hours:

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.
  • 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.
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

  • With a Return On Assets value of -4.68%, TWO is not doing good in the industry: 95.59% of the companies in the same industry are doing better.
  • 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 Gross Margin of 18.58%. This is in the lower half of the industry: TWO underperforms 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of TWO has declined.
  • The Profit Margin and Operating Margin are not available for TWO so they could not be analyzed.
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
  • TWO has a worse debt/assets ratio than last year.
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.
  • Looking at the Altman-Z score, with a value of -1.26, TWO is doing worse than 97.06% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 96.24, TWO is in the better half of 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's Debt to Equity ratio of 4.79 is in line compared to the rest of the industry. TWO outperforms 55.88% of its industry peers.
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.
  • TWO's Quick ratio of 0.16 is in line compared 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

More info and screens

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.
  • The earnings per share for TWO have been decreasing by -18.24% on average. This is quite bad
  • Looking at the last year, TWO shows a very negative growth in Revenue. The Revenue has decreased by -60.58% in the last year.
  • TWO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.73% yearly.
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

  • The Earnings Per Share is expected to grow by 10.17% on average over the next years. This is quite good.
  • 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 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

  • 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.
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

  • A Price/Earnings ratio of 9.39 indicates a reasonable valuation of TWO.
  • Based on the Price/Earnings ratio, TWO is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
  • TWO is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of TWO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 63.24% of the companies listed in the same industry.
  • TWO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.39
Fwd PE 9.03
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 12.65
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)2.34
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 14.11%, which is a nice return.
  • Compared to an average industry Dividend Yield of 11.19, TWO's dividend is way lower than its industry peers. On top of this 89.71% 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 1.91.
Industry RankSector Rank
Dividend Yield 14.11%

5.2 History

  • The dividend of TWO decreases each year by -12.03%.
  • TWO has been paying a dividend for at least 10 years, so it has 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

More info and screens

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TWO Fundamentals: All Metrics, Ratios and Statistics

TWO HARBORS INVESTMENT CORP

NYSE:TWO (3/20/2026, 8:26:14 PM)

After market: 10.7987 +0.09 (+0.83%)

10.71

-0.06 (-0.56%)

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 Cap1.12B
Revenue(TTM)618.61M
Net Income(TTM)-508.40M
Analysts69.23
Price Target12.5 (16.71%)
Short Float %6.96%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 14.11%
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 9.39
Fwd PE 9.03
P/S 1.82
P/FCF 12.65
P/OCF 12.65
P/B 0.63
P/tB 0.63
EV/EBITDA N/A
EPS(TTM)1.14
EY10.64%
EPS(NY)1.19
Fwd EY11.07%
FCF(TTM)0.85
FCFY7.9%
OCF(TTM)0.85
OCFY7.9%
SpS5.89
BVpS17.02
TBVpS17.02
PEG (NY)2.34
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 9.39 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 2 / 10.