(TWO) Two Harbors Investments - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 1.313m USD | Total Return: 29.4% in 12m
Avg Turnover: 25.7M
Qual. Beats: -2
Rev. Trend: 48.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Supp Ema20, Idiosyncratic Leader
Two Harbors Investment Corp. (TWO) is a real estate investment trust (REIT) focused on the management and financing of mortgage servicing rights (MSRs) and agency residential mortgage-backed securities (RMBS). Operating through its subsidiary, RoundPoint, the firm constructs a portfolio consisting of fixed-rate, adjustable-rate, and hybrid mortgage loans, alongside non-agency securities and related financial derivatives.
As a mortgage REIT (mREIT), the company typically utilizes leverage to fund the acquisition of mortgage assets, aiming to profit from the spread between the interest income generated and the cost of borrowing. Unlike equity REITs that own physical property, mREITs provide liquidity to the housing market by purchasing mortgage debt, making their performance highly sensitive to interest rate volatility and prepayment speeds. Investors may consult ValueRay to analyze these specific risk factors further.
Headquartered in Saint Louis Park, Minnesota, the company maintains its tax status by distributing at least 90% of its taxable income to shareholders. This structure allows the firm to avoid most federal corporate income taxes while providing a mechanism for capital flow into the U.S. residential mortgage sector.
- Mortgage servicing rights valuation fluctuates based on prevailing long-term interest rate trends
- Agency RMBS spread volatility impacts net asset value and book value performance
- Federal Reserve monetary policy shifts influence borrowing costs and investment portfolio yields
- Mortgage prepayment speeds affect the duration and cash flow of servicing assets
- Regulatory changes to REIT tax status or capital requirements impact dividend sustainability
| Net Income: -343.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -2.46 > 1.0 |
| NWC/Revenue: -1.01k% < 20% (prev -1.35k%; Δ 342.8% < -1%) |
| CFO/TA 0.00 > 3% & CFO 33.6m > Net Income -343.0m |
| Net Debt (7.81b) to EBITDA (438.2m): 17.82 < 3 |
| Current Ratio: 0.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (108.2m) vs 12m ago 4.07% < -2% |
| Gross Margin: 87.97% > 18% (prev 1.04%; Δ 8.69k% > 0.5%) |
| Asset Turnover: 6.32% > 50% (prev 5.60%; Δ 0.72% > 0%) |
| Interest Coverage Ratio: 0.96 > 6 (EBITDA TTM 438.2m / Interest Expense TTM 454.4m) |
| A: -0.73 (Total Current Assets 790.2m - Total Current Liabilities 8.52b) / Total Assets 10.5b |
| B: -0.45 (Retained Earnings -4.78b / Total Assets 10.5b) |
| C: 0.04 (EBIT TTM 438.2m / Avg Total Assets 12.1b) |
| D: -0.55 (Book Value of Equity -4.82b / Total Liabilities 8.80b) |
| Altman-Z'' = -6.62 = D |
As of May 28, 2026, the stock is trading at USD 12.49 with a total of 696,752 shares traded.
Over the past week, the price has changed by -0.08%,
over one month by +13.34%,
over three months by +24.66% and
over the past year by +29.41%.
Two Harbors Investments has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold TWO.
- StrongBuy: 3
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.3 | -9.7% |
P/E Forward = 11.0619
P/S = 2.6592
P/B = 1.1619
P/EG = 2.7643
Revenue TTM = 765.1m USD
EBIT TTM = 438.2m USD
EBITDA TTM = 438.2m USD
Long Term Debt = 111.2m USD (from longTermDebt, last quarter)
Short Term Debt = 8.17b USD (from shortTermDebt, last quarter)
Debt = 8.29b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.81b USD (calculated: Debt 8.29b - CCE 476.4m)
Enterprise Value = 9.12b USD (1.31b + Debt 8.29b - CCE 476.4m)
Interest Coverage Ratio = 0.96 (Ebit TTM 438.2m / Interest Expense TTM 454.4m)
EV/FCF = -130.6x (Enterprise Value 9.12b / FCF TTM -69.9m)
FCF Yield = -0.77% (FCF TTM -69.9m / Enterprise Value 9.12b)
FCF Margin = -9.13% (FCF TTM -69.9m / Revenue TTM 765.1m)
Net Margin = -44.82% (Net Income TTM -343.0m / Revenue TTM 765.1m)
Gross Margin = 87.97% ((Revenue TTM 765.1m - Cost of Revenue TTM 92.0m) / Revenue TTM)
Gross Margin QoQ = 55.66% (prev none%)
Tobins Q-Ratio = 0.87 (Enterprise Value 9.12b / Total Assets 10.5b)
Interest Expense / Debt = 5.48% (Interest Expense 454.4m / Debt 8.29b)
Taxrate = 11.19% (4.07m / 36.4m)
NOPAT = 389.2m (EBIT 438.2m * (1 - 11.19%))
Current Ratio = 0.09 (Total Current Assets 790.2m / Total Current Liabilities 8.52b)
Debt / Equity = 4.79 (Debt 8.29b / totalStockholderEquity, last quarter 1.73b)
Debt / EBITDA = 17.82 (Net Debt 7.81b / EBITDA 438.2m)
Debt / FCF = -111.8 (out of range, set to none) (Net Debt 7.81b / FCF TTM -69.9m)
Total Stockholder Equity = 1.79b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.83% (Net Income -343.0m / Total Assets 10.5b)
RoE = -5.22% (Net Income TTM -343.0m / Total Stockholder Equity 6.57b)
RoCE = 6.55% (EBIT 438.2m / Capital Employed (Equity 6.57b + L.T.Debt 111.2m))
RoIC = 3.82% (NOPAT 389.2m / Invested Capital 10.2b)
WACC = 5.30% (E(1.31b)/V(9.60b) * Re(7.99%) + D(8.29b)/V(9.60b) * Rd(5.48%) * (1-Tc(0.11)))
Discount Rate = 7.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.33 | Cagr: 4.74%
[DCF] Fair Price = unknown (Cash Flow -69.9m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.06 | # QB: -2
Revenue Correlation: 48.13 | Revenue CAGR: 11.05% | SUE: 0.75 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.29 | Chg30d=+4.45% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.31 | Chg30d=+2.06% | Revisions=+0% | Analysts=3
EPS current Year (2026-12-31): EPS=1.27 | Chg30d=+19.16% | Revisions=+0% | GrowthEPS=+11.6% | GrowthRev=+49.0%
EPS next Year (2027-12-31): EPS=1.16 | Chg30d=-12.87% | Revisions=+20% | GrowthEPS=-8.9% | GrowthRev=+102.5%
[Analyst] Revisions Ratio: +20%