TWO HARBORS INVESTMENT CORP (TWO) Stock Fundamental Analysis

NYSE:TWO • US90187B8046

10.56 USD
-0.22 (-2.04%)
At close: Feb 23, 2026
10.76 USD
+0.2 (+1.89%)
After Hours: 2/23/2026, 6:42:31 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TWO. TWO was compared to 69 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. TWO may be in some trouble as it scores bad on both profitability and health. TWO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

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.
  • In multiple years TWO reported negative net income over the last 5 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 has a Return On Assets of -2.23%. This is amonst the worse of the industry: TWO underperforms 81.16% of its industry peers.
  • With a Return On Equity value of -13.70%, TWO is not doing good in the industry: 84.06% of the companies in the same industry are doing better.
  • TWO's Return On Invested Capital of 0.23% is on the low side compared to the rest of the industry. TWO is outperformed by 69.57% of its industry peers.
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

  • TWO's Profit Margin has improved in the last couple of years.
  • The Operating Margin of TWO (2.96%) is worse than 72.46% of its industry peers.
  • In the last couple of years the Operating Margin of TWO has grown nicely.
  • Looking at the Gross Margin, with a value of 42.34%, TWO belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

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

  • 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.
  • TWO has a worse Altman-Z score (-1.14) than 97.10% 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.
  • TWO's Debt to Equity ratio of 4.76 is in line compared to the rest of the industry. TWO outperforms 55.07% of its industry peers.
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

  • TWO has a Current 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.
  • TWO has a Current ratio of 0.17. This is comparable to the rest of the industry: TWO outperforms 57.97% 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.
  • TWO has a Quick ratio (0.17) which is comparable to the rest of the 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

More info and screens

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

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 107.27% over the past year.
  • 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

  • TWO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.99% yearly.
  • 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 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

  • The EPS 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

More info and screens

Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.26, which indicates a very decent valuation of TWO.
  • Compared to the rest of the industry, the Price/Earnings ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 71.01% of the companies listed in the same industry.
  • TWO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
  • With a Price/Forward Earnings ratio of 7.45, the valuation of TWO can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TWO indicates a somewhat cheap valuation: TWO is cheaper than 71.01% of the companies listed 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 27.75.
Industry RankSector Rank
PE 9.26
Fwd PE 7.45
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)0.38
PEG (5Y)N/A
EPS Next 2Y13.99%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • TWO has a Yearly Dividend Yield of 13.62%, which is a nice return.
  • Compared to an average industry Dividend Yield of 11.22, TWO pays a bit more dividend than its industry peers.
  • TWO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 13.62%

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
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-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

More info and screens

Find the best dividend stocksShow peers with best dividend

TWO HARBORS INVESTMENT CORP

NYSE:TWO (2/23/2026, 6:42:31 PM)

After market: 10.76 +0.2 (+1.89%)

10.56

-0.22 (-2.04%)

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 Cap1.11B
Revenue(TTM)N/A
Net Income(TTM)-242.81M
Analysts69.23
Price Target12.11 (14.68%)
Short Float %6.74%
Short Ratio1.98
Dividend
Industry RankSector Rank
Dividend Yield 13.62%
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)8.94%
PT rev (3m)8.78%
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 9.26
Fwd PE 7.45
P/S 1.19
P/FCF N/A
P/OCF N/A
P/B 0.62
P/tB 0.62
EV/EBITDA N/A
EPS(TTM)1.14
EY10.8%
EPS(NY)1.42
Fwd EY13.43%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)-0.47
OCFYN/A
SpS8.9
BVpS16.9
TBVpS16.9
PEG (NY)0.38
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 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 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 9.26 and the Price/Book (PB) ratio is 0.62.


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.