TWO HARBORS INVESTMENT CORP (TWO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWO - US90187B8046 - REIT
10.58 USD
-0.01 (-0.09%)
Overall TWO gets a fundamental rating of 4 out of 10. We evaluated TWO against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While TWO is still in line with the averages on profitability rating, there are concerns on its financial health. TWO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TWO had positive earnings in the past year.
TWO had a negative operating cash flow in the past year.
In multiple years TWO reported negative net income over the last 5 years.
TWO had a positive operating cash flow in each of the past 5 years.
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.
TWO has a Return On Equity of -13.70%. This is amonst the worse of the industry: TWO underperforms 82.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.23%, TWO is doing worse than 69.12% of the companies in the same industry.
| 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
TWO's Profit Margin has improved in the last couple of years.
TWO has a Operating Margin of 2.96%. This is in the lower half of the industry: TWO underperforms 72.06% of its industry peers.
In the last couple of years the Operating Margin of TWO has grown nicely.
TWO's Gross Margin of 42.34% is amongst the best of 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
The number of shares outstanding for TWO has been increased compared to 1 year ago.
TWO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TWO has an improved debt to assets ratio.
2.2 Solvency
TWO has an Altman-Z score of -1.14. 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 -1.14, TWO is doing worse than 97.06% of the companies in the same industry.
TWO has a Debt/Equity ratio of 4.76. This is a high value indicating a heavy dependency on external financing.
TWO has a Debt to Equity ratio of 4.76. This is comparable to the rest of the industry: TWO outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.14 |
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 (0.17) which is in line with 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 of 0.17. This is comparable to the rest of the industry: TWO outperforms 55.88% of its industry peers.
| 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.
Measured over the past years, TWO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.86% on average per year.
TWO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.
TWO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.54% yearly.
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
The Earnings Per Share is expected to grow by 39.13% on average over the next years. This is a very strong growth
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 Year42.68%
Revenue Next 2Y22.49%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.80, the valuation of TWO can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, TWO is valued rather cheaply.
TWO is valuated cheaply with a Price/Forward Earnings ratio of 7.30.
TWO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TWO is cheaper than 79.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. TWO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 39.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y62.37%
EPS Next 3Y39.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.06%, TWO is a good candidate for dividend investing.
TWO's Dividend Yield is slightly below the industry average, which is at 10.99.
TWO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
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 (12/30/2025, 11:35:36 AM)
10.58
-0.01 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners71.25%
Inst Owner Change-3.95%
Ins Owners0.84%
Ins Owner Change9.74%
Market Cap1.10B
Revenue(TTM)933.29M
Net Income(TTM)-242.81M
Analysts72.31
Price Target11.12 (5.1%)
Short Float %8.56%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
Yearly Dividend2.27
Dividend Growth(5Y)-22.81%
DP-95.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)4.11%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)-3.15%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)4.43%
Revenue NQ rev (3m)34.11%
Revenue NY rev (1m)6.92%
Revenue NY rev (3m)11.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 7.3 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.62 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY10.21%
EPS(NY)1.45
Fwd EY13.71%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.96
BVpS17.01
TBVpS17.01
PEG (NY)0.08
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 | -1.14 |
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)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 Year42.68%
Revenue Next 2Y22.49%
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.
Can you provide the valuation status for TWO HARBORS INVESTMENT CORP?
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 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 9.8 and the Price/Book (PB) ratio is 0.62.
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 -95.7%.