Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States.
Undervalued with limited growth.
Share Price & News
How has Two Harbors Investment's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TWO's share price has been volatile over the past 3 months.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: TWO underperformed the US Mortgage REITs industry which returned -64.6% over the past year.
Return vs Market: TWO underperformed the US Market which returned -10% over the past year.
Price Volatility Vs. Market
How volatile is Two Harbors Investment's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHow Much is Two Harbors Investment Corp.'s (NYSE:TWO) CEO Getting Paid?
1 month ago | Simply Wall StTwo Harbors Investment (NYSE:TWO) Shareholders Received A Total Return Of 61% In The Last Five Years
2 months ago | Simply Wall StDo Directors Own Two Harbors Investment Corp. (NYSE:TWO) Shares?
Is Two Harbors Investment undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TWO ($4.12) is trading below our estimate of fair value ($18.07)
Significantly Below Fair Value: TWO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TWO is poor value based on its PE Ratio (4.4x) compared to the Mortgage REITs industry average (3.2x).
PE vs Market: TWO is good value based on its PE Ratio (4.4x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: TWO is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: TWO is good value based on its PB Ratio (0.3x) compared to the US Mortgage REITs industry average (0.3x).
How is Two Harbors Investment forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWO's forecast earnings growth (14.9% per year) is above the savings rate (1.7%).
Earnings vs Market: TWO's earnings (14.9% per year) are forecast to grow faster than the US market (13.3% per year).
High Growth Earnings: TWO's earnings are forecast to grow, but not significantly.
Revenue vs Market: TWO's revenue is expected to decline over the next 3 years (-82% per year).
High Growth Revenue: TWO's revenue is forecast to decline over the next 3 years (-82% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TWO's Return on Equity is forecast to be low in 3 years time (10.1%).
How has Two Harbors Investment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWO has high quality earnings.
Growing Profit Margin: TWO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TWO's earnings have declined by -25.7% per year over the past 5 years.
Accelerating Growth: TWO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: TWO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (18.1%).
Return on Equity
High ROE: TWO's Return on Equity (6.5%) is considered low.
How is Two Harbors Investment's financial position?
Financial Position Analysis
Short Term Liabilities: TWO's short term assets ($2.5B) do not cover its short term liabilities ($29.6B).
Long Term Liabilities: TWO's short term assets ($2.5B) exceed its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: TWO's debt to equity ratio (610.5%) is considered high.
Reducing Debt: TWO's debt to equity ratio has increased from 411.5% to 610.5% over the past 5 years.
Debt Coverage: TWO's debt is not well covered by operating cash flow (3.5%).
Interest Coverage: Insufficient data to determine if TWO's interest payments on its debt are well covered by EBIT.
What is Two Harbors Investment's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TWO's dividend (4.85%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: TWO's dividend (4.85%) is low compared to the top 25% of dividend payers in the US market (5.46%).
Stability and Growth of Payments
Stable Dividend: TWO's dividend payments have been volatile in the past 10 years.
Growing Dividend: TWO's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (180.2%), TWO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TWO's dividends in 3 years are not forecast to be well covered by earnings (102.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Siering (59yo)
Mr. Thomas Edwin Siering, also known as Tom, has been the Chief Executive Officer and President at Two Harbors Investment Corp. since May 2009. Mr. Siering serves as the Chief Executive Officer at TH TRS C ...
|CEO, President & Director||10.5yrs||US$3.83m||0.41% $5.3m|
|VP & CFO||1.5yrs||US$295.69k||0.041% $535.5k|
|VP, General Counsel & Secretary||7.08yrs||US$835.80k||0.077% $1.0m|
|VP & Co-Chief Investment Officer||0.25yr||no data||0.062% $808.0k|
|VP & Co-Chief Investment Officer||0.25yr||no data||0.068% $893.1k|
|MD & CTO||0.25yr||no data||no data|
|Managing Director of Human Resources||1.25yrs||no data||no data|
|Managing Director||7.25yrs||no data||no data|
|MD & Chief Risk Officer||6.58yrs||no data||no data|
|Managing Director||3.25yrs||no data||no data|
Experienced Management: TWO's management team is considered experienced (2.4 years average tenure).
|CEO, President & Director||10.5yrs||US$3.83m||0.41% $5.3m|
|Independent Chairman of the Board||no data||US$249.99k||0.031% $409.0k|
|Independent Director||6.92yrs||US$199.99k||0.012% $154.1k|
|Independent Director||1.75yrs||US$114.34k||0.028% $368.3k|
|Independent Director||10.5yrs||US$199.99k||0.030% $395.6k|
|Independent Director||5.92yrs||US$199.99k||0.010% $135.7k|
|Independent Director||7.92yrs||US$199.99k||0.016% $208.1k|
|Independent Director||1.75yrs||US$114.34k||0.017% $225.3k|
Experienced Board: TWO's board of directors are considered experienced (6.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30%.
Two Harbors Investment Corp.'s company bio, employee growth, exchange listings and data sources
- Name: Two Harbors Investment Corp.
- Ticker: TWO
- Exchange: NYSE
- Founded: 2009
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$1.305b
- Shares outstanding: 273.53m
- Website: https://www.twoharborsinvestment.com
- Two Harbors Investment Corp.
- 575 Lexington Avenue
- Suite 2930
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TWO||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 2009|
|2H2A||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 2009|
|TWO.PRA||NYSE (New York Stock Exchange)||PFD SER A||US||USD||Mar 2017|
|TWO.PRB||NYSE (New York Stock Exchange)||7.625% PFD B FXD||US||USD||Jul 2017|
|TWO.PRE||NYSE (New York Stock Exchange)||7.50% CM PFD E||US||USD||Aug 2018|
|TWO.PRD||NYSE (New York Stock Exchange)||7.75% CM PFD D||US||USD||Aug 2018|
Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); non-agency securities collateralized by residential mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and non-hedging transactions. The company qualifies as a REIT for federal income tax purposes. As a REIT, the Company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/09 03:51|
|End of Day Share Price||2020/04/08 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.