A Business at a Glance
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TWO HARBORS INVESTMENT CORP.
TWO
$1.3B
Mkt Cap
$12.10
+0.08%
TWO HARBORS INVESTMENT CORP. (TWO) has a 5-year average return on invested capital (ROIC) of 15.3%. This indicates strong capital allocation and a potential competitive advantage.
TWO HARBORS INVESTMENT CORP. (TWO) has a market capitalization of $1.3B. It is classified as a small-cap stock.
Yes, TWO HARBORS INVESTMENT CORP. (TWO) pays a dividend with a trailing twelve-month yield of 12.57%.
TWO HARBORS INVESTMENT CORP. (TWO) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
TWO HARBORS INVESTMENT CORP. (TWO) generated $89 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TWO HARBORS INVESTMENT CORP. (TWO) has a debt-to-equity ratio of 4.79. This indicates higher leverage, which may increase financial risk.
TWO HARBORS INVESTMENT CORP. (TWO) reported earnings per share (EPS) of $-4.88 in its most recent fiscal year.
Two Harbors Investment Corp. is a Maryland corporation founded in 2009 that invests in, finances and manages mortgage servicing rights (“MSR”) and Agency residential mortgage-backed securities (“RMBS”) and, through its operational platform, RoundPoint Mortgage Servicing LLC (“RoundPoint”), is one of the largest servicers of conventional loans in the country. Agency refers to a U.S. government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”), or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or a U.S. government agency such as the Government National Mortgage Association (“Ginnie Mae”). We are structured as an internally-managed real estate investment trust (“REIT”) and our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “TWO.” The terms “Two Harbors,” “we,” “our,” “us” and the “Company” refer to Two Harbors Investment Corp. and its subsidiaries as a consolidated entity.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | -65M | - | -158M | -163M | - | 79M |
| Net Income | -397M | -508M | 250M | -153M | 186M | 128M |
| EPS | $-3.81 | $-4.88 | $2.37 | $-1.60 | $2.13 | $6.88 |
| Free Cash Flow | 0 | 89M | 201M | 344M | 623M | 424M |
| ROIC | 0.0% | -5.7% | 36.2% | 23.4% | 15.1% | 7.4% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 4.79 | 4.79 | 0.00 | 0.12 | 0.13 | 0.52 |
| Dividends/Share | $1.52 | $1.52 | $1.80 | $1.95 | $2.64 | $10.40 |
| Operating Income | 0 | -111M | 904M | 513M | 548M | 221M |
| Operating Margin | 0.0% | - | -573.6% | -315.0% | - | - |
| ROE | -22.9% | -26.0% | 11.6% | -7.0% | 7.5% | 4.4% |
| Shares Outstanding | 105M | 104M | 105M | 96M | 87M | 19M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 488M | 451M | 362M | 395M | 350M | 280M | N/A | 79M | N/A | -163M | -158M | N/A | -65M |
| Gross Margin | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | 36M | 33M | 38M | 35M | 41M | 53M | 90M | 95M | 95M |
| EBIT | 19M | 617M | 579M | 663M | 452M | 949M | -1.5B | 221M | 548M | 513M | 904M | -111M | 0 |
| Op. Margin | 3.8% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -315.0% | -573.6% | N/A | 0.0% |
| Net Income | 167M | 492M | 353M | 323M | -110M | 248M | -1.7B | 128M | 186M | -153M | 250M | -508M | -397M |
| Net Margin | 34.2% | 109.1% | 97.6% | 81.9% | -31.3% | 88.5% | N/A | 161.2% | N/A | 94.1% | -158.6% | N/A | 0.0% |
| Non-Recurring | 0 | 0 | 3.0M | 0 | 8.2M | 0 | 5.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 4.2% | 23.7% | 20.5% | 19.0% | 11.5% | 20.6% | -40.9% | 7.4% | 15.1% | 23.4% | 36.2% | -5.7% | 0.0% |
| ROE | 4.2% | 12.9% | 10.1% | 9.3% | -2.8% | 5.4% | -42.3% | 4.4% | 7.5% | -7.0% | 11.6% | -26.0% | -22.9% |
| ROA | 0.9% | 2.8% | 2.0% | 1.4% | -0.4% | 0.8% | -6.2% | 0.8% | 1.5% | -1.2% | 2.0% | -4.4% | -3.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 667M | 1.9B | 240M | 607M | 703M | 1.1B | 632M | 424M | 623M | 344M | 201M | 89M | 34M |
| Free Cash Flow | 667M | 1.9B | 240M | 607M | 703M | 1.1B | 632M | 424M | 623M | 344M | 201M | 89M | 0 |
| Owner Earnings | 650M | 1.9B | 223M | 594M | 690M | 1.0B | 622M | 412M | 612M | 333M | 190M | 76M | 22M |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 1.9M | 3.3M | 1.3M | 969K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 1.9M | 3.3M | 1.3M | 969K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 286M | 382M | 332M | 423M | 271M | 463M | 199M | 193M | 235M | 198M | 188M | 171M | 160M |
| Dividend Yield | 39.4% | 99.2% | 94.8% | 45.2% | 23.4% | 30.5% | 22.0% | 75.1% | 24.6% | 22.1% | 17.9% | 16.7% | 12.6% |
| Share Buybacks | 0 | 115M | 61M | 0 | 0 | 19K | 1.1M | 0 | 0 | 7.1M | 0 | 0 | 0 |
| Buyback Yield | N/A | 13.5% | 7.8% | N/A | N/A | 0.0% | 0.1% | N/A | N/A | 0.7% | N/A | N/A | 0.0% |
| Stock-Based Comp | 15M | 9.0M | 15M | 11M | 13M | 9.2M | 9.7M | 11M | 12M | 11M | 11M | 13M | 11M |
| Debt Repayment | 183M | 407M | 832M | 329M | 0 | 0 | 0 | 143M | 144M | 13M | 9.7M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -1.1B | -1.4B | -173M | -21.5B | -26.0B | -30.6B | -14.7B | -6.9B | -8.2B | -8.8B | -7.9B | 1.2B | 1.3B |
| Cash & Equiv. | 1.0B | 1.0B | 351M | 419M | 410M | 558M | 1.4B | 1.2B | 683M | 730M | 505M | 842M | 7.0B |
| Long-Term Debt | 27M | 0 | 0 | 18M | 0 | 395M | 286M | 425M | 282M | 0 | 0 | 8.6B | 8.3B |
| Debt/Equity | 0.01 | 0.00 | 0.02 | 0.03 | 0.00 | 0.28 | 0.42 | 0.52 | 0.13 | 0.12 | 0.00 | 4.79 | 4.79 |
| Interest Coverage | 0.2 | 4.4 | 2.7 | 1.9 | 0.9 | 1.3 | -5.2 | 2.5 | 2.1 | 0.8 | 1.5 | -0.3 | -0.3 |
| Equity | 4.1B | 3.6B | 3.4B | 3.6B | 4.3B | 5.0B | 3.1B | 2.7B | 2.2B | 2.2B | 2.1B | 1.8B | 1.7B |
| Total Assets | 21.1B | 14.6B | 20.1B | 24.8B | 30.1B | 35.9B | 19.5B | 12.1B | 13.5B | 13.1B | 12.2B | 10.9B | 10.5B |
| Total Liabilities | 17.0B | 11.0B | 16.7B | 21.2B | 25.9B | 31.0B | 16.4B | 9.4B | 11.3B | 10.9B | 10.1B | 9.1B | 8.8B |
| Intangibles | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 0 | -3.0M | 0 | 0 | 9.9M | 442K | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 3.68 | 21.60 | 16.24 | 7.24 | -2.12 | 3.72 | -24.93 | 6.88 | 2.13 | -1.60 | 2.37 | -4.88 | -3.81 |
| Owner EPS | 14.32 | 84.45 | 10.26 | 13.31 | 13.33 | 15.70 | 9.09 | 22.14 | 7.02 | 3.47 | 1.80 | 0.73 | 0.21 |
| Book Value | 89.57 | 156.95 | 156.35 | 79.94 | 82.23 | 74.51 | 45.14 | 147.44 | 25.06 | 23.01 | 20.12 | 17.16 | 16.48 |
| Cash Flow/Share | 14.69 | 84.99 | 11.02 | 13.58 | 13.59 | 15.84 | 9.23 | 22.76 | 7.16 | 3.59 | 1.91 | 0.85 | -3.78 |
| Dividends/Share | 6.29 | 16.75 | 15.26 | 9.47 | 5.23 | 6.94 | 2.92 | 10.40 | 2.64 | 1.95 | 1.80 | 1.52 | 1.52 |
| Shares Out. | 45.4M | 22.8M | 21.8M | 44.7M | 51.7M | 66.7M | 68.4M | 18.6M | 87.1M | 95.8M | 105.5M | 104.2M | 105.0M |
| Valuation | |||||||||||||
| P/E Ratio | 5.6 | 1.7 | 2.2 | 3.2 | N/A | 7.1 | N/A | 7.5 | 4.5 | N/A | 4.0 | N/A | -3.2 |
| P/FCF | 1.1 | 0.2 | 1.6 | 1.7 | 1.5 | 1.7 | 1.4 | 0.6 | 1.3 | 2.8 | 5.0 | 12.0 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.4 | 0.3 | 0.4 | 0.4 | 0.4 | 0.5 | 0.6 | 0.7 |
| Price/Sales | 1.9 | 2.0 | 1.9 | 2.4 | 3.3 | 5.4 | N/A | 13.1 | N/A | N/A | N/A | N/A | N/A |
| FCF Yield | 71.8% | 226.6% | 30.7% | 59.0% | 65.2% | 59.8% | 58.7% | 43.9% | 74.7% | 35.9% | 19.8% | 8.4% | N/A |
| Market Cap | 929M | 855M | 781M | 1.0B | 1.1B | 1.8B | 1.1B | 964M | 834M | 957M | 1.0B | 1.1B | 1.3B |
| Avg. Price | 15.98 | 16.88 | 16.09 | 20.95 | 22.39 | 22.78 | 13.26 | 13.85 | 10.98 | 9.36 | 9.93 | 9.80 | 12.10 |
| Year-End Price | 16.75 | 15.36 | 17.95 | 23.04 | 20.83 | 26.48 | 12.52 | 12.87 | 9.51 | 10.07 | 9.54 | 10.20 | 12.10 |
TWO HARBORS INVESTMENT CORP. passes 1 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 14.1x vs a median of 1.7x. The company's 5-year average ROIC is 15.3%. Total shareholder yield (dividends) is 12.6%. At current prices, the estimated annualized return to fair value is -28.7%.
TWO HARBORS INVESTMENT CORP. (TWO) has a return on equity (ROE) of -26.0%. A negative ROE may indicate losses or negative equity.
The Ledger Terminal provides 17 years of financial data for TWO HARBORS INVESTMENT CORP. (TWO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TWO HARBORS INVESTMENT CORP. (TWO) has a book value per share of $17.16, based on its most recent annual SEC filing.