(TWO) Two Harbors Investments - Ratings and Ratios
Exchange: NYSE •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US90187B8046
Agency RMBS, MSRs, Non-Agency Securities, Mortgage Loans
Dividends
| Dividend Yield | 16.41% |
| Yield on Cost 5y | 12.20% |
| Yield CAGR 5y | 37.74% |
| Payout Consistency | 85.8% |
| Payout Ratio | 1.5% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 23.3% |
| Value at Risk 5%th | 39.1% |
| Relative Tail Risk | 1.78% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.16 |
| Alpha | -15.86 |
| CAGR/Max DD | -0.04 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.553 |
| Beta | 0.744 |
| Beta Downside | 0.785 |
| Drawdowns 3y | |
|---|---|
| Max DD | 40.62% |
| Mean DD | 17.69% |
| Median DD | 19.76% |
Description: TWO Two Harbors Investments November 15, 2025
Two Harbors Investment Corp. (NYSE:TWO) is a REIT that acquires, finances, and manages mortgage-servicing rights (MSRs) and agency residential mortgage-backed securities (RMBS) through its RoundPoint platform. Its asset universe spans fixed-rate, adjustable-rate, hybrid mortgages and related derivatives, as well as non-agency and non-hedging financial instruments. Because it is structured as a REIT, it must distribute at least 90 % of taxable income to shareholders each year.
Key metrics that investors watch include a FY 2023 dividend yield of roughly 10.2 % and a net asset value (NAV) of about $12.5 per share, reflecting a $15 billion MSR portfolio. The company’s earnings are highly sensitive to Federal Reserve policy: rising rates tend to boost MSR spreads but also increase prepayment risk, while a slowdown in the U.S. housing market can compress agency RMBS spreads and pressure cash flows. Additionally, the broader Mortgage REIT sector is currently driven by the widening spread between Treasury yields and agency MBS coupons, a factor that directly influences TWO’s net interest margin.
If you want a deeper, data-driven view of TWO’s valuation dynamics, a quick look at ValueRay’s analyst toolkit can help you surface the most material assumptions and scenario analyses.
Piotroski VR‑10 (Strict, 0-10) 2.0
| Net Income (-201.1m TTM) > 0 and > 6% of Revenue (6% = 67.6m TTM) |
| FCFTA -0.02 (>2.0%) and ΔFCFTA -3.35pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -3.66% (prev -1021 %; Δ 1017 pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.00 (>3.0%) and CFO -49.3m > Net Income -201.1m (YES >=105%, WARN >=100%) |
| Net Debt (-509.2m) to EBITDA (430.4m) ratio: -1.18 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.99 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (104.1m) change vs 12m ago 0.43% (target <= -2.0% for YES) |
| Gross Margin 75.34% (prev -35.69%; Δ 111.0pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 9.49% (prev 5.06%; Δ 4.43pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.22 (EBITDA TTM 430.4m / Interest Expense TTM 524.2m) >= 6 (WARN >= 3) |
Altman Z'' -1.63
| (A) -0.00 = (Total Current Assets 7.15b - Total Current Liabilities 7.19b) / Total Assets 10.87b |
| (B) -0.43 = Retained Earnings (Balance) -4.73b / Total Assets 10.87b |
| (C) 0.05 = EBIT TTM 638.6m / Avg Total Assets 11.88b |
| (D) -0.53 = Book Value of Equity -4.78b / Total Liabilities 9.09b |
| Total Rating: -1.63 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 56.77
| 1. Piotroski 2.0pt |
| 2. FCF Yield 2.88% |
| 3. FCF Margin -14.79% |
| 4. Debt/Equity 0.15 |
| 5. Debt/Ebitda -1.18 |
| 6. ROIC - WACC (= 8.08)% |
| 7. RoE -10.15% |
| 8. Rev. Trend 41.52% |
| 9. EPS Trend -52.66% |
What is the price of TWO shares?
As of December 14, 2025, the stock is trading at USD 9.93 with a total of 1,201,926 shares traded.
Over the past week, the price has changed by -2.84%, over one month by +2.16%, over three months by +2.26% and over the past year by -3.45%.
Over the past week, the price has changed by -2.84%, over one month by +2.16%, over three months by +2.26% and over the past year by -3.45%.
Is TWO a buy, sell or hold?
Two Harbors Investments has received a consensus analysts rating of 3.80.
Therefor, it is recommend to hold TWO.
- Strong Buy: 3
- Buy: 2
- Hold: 5
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the TWO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 10.9 | 10% |
| Analysts Target Price | 10.9 | 10% |
| ValueRay Target Price | 12.3 | 23.7% |
TWO Fundamental Data Overview December 03, 2025
Market Cap USD = 1.06b (1.06b USD * 1.0 USD.USD)
P/E Forward = 7.215
P/S = 1.9942
P/B = 0.9025
P/EG = 3.59
Beta = 1.234
Revenue TTM = 1.13b USD
EBIT TTM = 638.6m USD
EBITDA TTM = 430.4m USD
Long Term Debt = 372.2m USD (from longTermDebt, last quarter)
Short Term Debt = 953.8m USD (from shortLongTermDebt, last quarter)
Debt = 261.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -509.2m USD (from netDebt column, last quarter)
Enterprise Value = -5.80b USD (1.06b + Debt 261.4m - CCE 7.12b)
Interest Coverage Ratio = 1.22 (Ebit TTM 638.6m / Interest Expense TTM 524.2m)
FCF Yield = 2.88% (FCF TTM -166.7m / Enterprise Value -5.80b)
FCF Margin = -14.79% (FCF TTM -166.7m / Revenue TTM 1.13b)
Net Margin = -17.84% (Net Income TTM -201.1m / Revenue TTM 1.13b)
Gross Margin = 75.34% ((Revenue TTM 1.13b - Cost of Revenue TTM 277.9m) / Revenue TTM)
Gross Margin QoQ = 98.48% (prev 100.0%)
Tobins Q-Ratio = -0.53 (set to none) (Enterprise Value -5.80b / Total Assets 10.87b)
Interest Expense / Debt = 44.81% (Interest Expense 117.1m / Debt 261.4m)
Taxrate = -0.95% (negative due to tax credits) (1.20m / -126.7m)
NOPAT = 644.6m (EBIT 638.6m * (1 - -0.95%)) [negative tax rate / tax credits]
Current Ratio = 0.99 (Total Current Assets 7.15b / Total Current Liabilities 7.19b)
Debt / Equity = 0.15 (Debt 261.4m / totalStockholderEquity, last quarter 1.77b)
Debt / EBITDA = -1.18 (Net Debt -509.2m / EBITDA 430.4m)
Debt / FCF = 3.05 (negative FCF - burning cash) (Net Debt -509.2m / FCF TTM -166.7m)
Total Stockholder Equity = 1.98b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.85% (Net Income -201.1m / Total Assets 10.87b)
RoE = -10.15% (Net Income TTM -201.1m / Total Stockholder Equity 1.98b)
RoCE = 27.13% (EBIT 638.6m / Capital Employed (Equity 1.98b + L.T.Debt 372.2m))
RoIC = 24.04% (NOPAT 644.6m / Invested Capital 2.68b)
WACC = 15.97% (E(1.06b)/V(1.32b) * Re(8.76%) + D(261.4m)/V(1.32b) * Rd(44.81%) * (1-Tc(-0.01)))
Discount Rate = 8.76% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.33%
Fair Price DCF = unknown (Cash Flow -166.7m)
EPS Correlation: -52.66 | EPS CAGR: -21.21% | SUE: 0.0 | # QB: 0
Revenue Correlation: 41.52 | Revenue CAGR: 115.7% | SUE: 0.69 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.36 | Chg30d=+0.022 | Revisions Net=+4 | Analysts=7
EPS next Year (2026-12-31): EPS=1.45 | Chg30d=+0.021 | Revisions Net=+2 | Growth EPS=+16.7% | Growth Revenue=+18.2%
P/E Forward = 7.215
P/S = 1.9942
P/B = 0.9025
P/EG = 3.59
Beta = 1.234
Revenue TTM = 1.13b USD
EBIT TTM = 638.6m USD
EBITDA TTM = 430.4m USD
Long Term Debt = 372.2m USD (from longTermDebt, last quarter)
Short Term Debt = 953.8m USD (from shortLongTermDebt, last quarter)
Debt = 261.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -509.2m USD (from netDebt column, last quarter)
Enterprise Value = -5.80b USD (1.06b + Debt 261.4m - CCE 7.12b)
Interest Coverage Ratio = 1.22 (Ebit TTM 638.6m / Interest Expense TTM 524.2m)
FCF Yield = 2.88% (FCF TTM -166.7m / Enterprise Value -5.80b)
FCF Margin = -14.79% (FCF TTM -166.7m / Revenue TTM 1.13b)
Net Margin = -17.84% (Net Income TTM -201.1m / Revenue TTM 1.13b)
Gross Margin = 75.34% ((Revenue TTM 1.13b - Cost of Revenue TTM 277.9m) / Revenue TTM)
Gross Margin QoQ = 98.48% (prev 100.0%)
Tobins Q-Ratio = -0.53 (set to none) (Enterprise Value -5.80b / Total Assets 10.87b)
Interest Expense / Debt = 44.81% (Interest Expense 117.1m / Debt 261.4m)
Taxrate = -0.95% (negative due to tax credits) (1.20m / -126.7m)
NOPAT = 644.6m (EBIT 638.6m * (1 - -0.95%)) [negative tax rate / tax credits]
Current Ratio = 0.99 (Total Current Assets 7.15b / Total Current Liabilities 7.19b)
Debt / Equity = 0.15 (Debt 261.4m / totalStockholderEquity, last quarter 1.77b)
Debt / EBITDA = -1.18 (Net Debt -509.2m / EBITDA 430.4m)
Debt / FCF = 3.05 (negative FCF - burning cash) (Net Debt -509.2m / FCF TTM -166.7m)
Total Stockholder Equity = 1.98b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.85% (Net Income -201.1m / Total Assets 10.87b)
RoE = -10.15% (Net Income TTM -201.1m / Total Stockholder Equity 1.98b)
RoCE = 27.13% (EBIT 638.6m / Capital Employed (Equity 1.98b + L.T.Debt 372.2m))
RoIC = 24.04% (NOPAT 644.6m / Invested Capital 2.68b)
WACC = 15.97% (E(1.06b)/V(1.32b) * Re(8.76%) + D(261.4m)/V(1.32b) * Rd(44.81%) * (1-Tc(-0.01)))
Discount Rate = 8.76% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.33%
Fair Price DCF = unknown (Cash Flow -166.7m)
EPS Correlation: -52.66 | EPS CAGR: -21.21% | SUE: 0.0 | # QB: 0
Revenue Correlation: 41.52 | Revenue CAGR: 115.7% | SUE: 0.69 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.36 | Chg30d=+0.022 | Revisions Net=+4 | Analysts=7
EPS next Year (2026-12-31): EPS=1.45 | Chg30d=+0.021 | Revisions Net=+2 | Growth EPS=+16.7% | Growth Revenue=+18.2%
Additional Sources for TWO Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle