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Two Harbors Investment

NYSE:TWO
Snowflake Description

Moderate growth potential unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TWO
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

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. The last earnings update was 56 days ago. More info.


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TWO Share Price and Events
7 Day Returns
0.9%
NYSE:TWO
0.2%
US Mortgage REITs
-0.1%
US Market
1 Year Returns
-12.4%
NYSE:TWO
1.3%
US Mortgage REITs
7.6%
US Market
TWO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Two Harbors Investment (TWO) 0.9% 0.3% -3.9% -12.4% -12.4% -33.4%
US Mortgage REITs 0.2% 0.2% 1.6% 1.3% 10.9% -7.2%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • TWO underperformed the Mortgage REITs industry which returned 1.3% over the past year.
  • TWO underperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
TWO
Industry
5yr Volatility vs Market

TWO Value

 Is Two Harbors Investment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Two Harbors Investment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Two Harbors Investment.

NYSE:TWO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $13.34 * 13.3%
$1.77
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $13.34
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TWO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.287 (1 + (1- 21%) (673.52%))
1.548
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.55
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.548 * 5.96%)
11.95%

Discounted Cash Flow Calculation for NYSE:TWO using Excess Returns Model Model

The calculations below outline how an intrinsic value for Two Harbors Investment is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:TWO Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.3% – 11.95%) * $13.34)
$0.18
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.18 / (11.95% - 2.73%)
$1.93
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $13.34 + $1.93
$15.26
NYSE:TWO Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.26
Current discount Discount to share price of $13.83
= -1 x ($13.83 - $15.26) / $15.26
9.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Two Harbors Investment is available for.
Intrinsic value
9%
Share price is $13.83 vs Future cash flow value of $15.26
Current Discount Checks
For Two Harbors Investment to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Two Harbors Investment's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Two Harbors Investment's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Two Harbors Investment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Two Harbors Investment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TWO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.53
NYSE:TWO Share Price ** NYSE (2019-04-23) in USD $13.83
United States of America Mortgage REITs Industry PE Ratio Median Figure of 22 Publicly-Listed Mortgage REITs Companies 11.43x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Two Harbors Investment.

NYSE:TWO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TWO Share Price ÷ EPS (both in USD)

= 13.83 ÷ -0.53

-25.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Two Harbors Investment is loss making, we can't compare its value to the US Mortgage REITs industry average.
  • Two Harbors Investment is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Two Harbors Investment's expected growth come at a high price?
Raw Data
NYSE:TWO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -25.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
61.6%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 19 Publicly-Listed Mortgage REITs Companies 1.03x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Two Harbors Investment, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Two Harbors Investment's assets?
Raw Data
NYSE:TWO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.21
NYSE:TWO Share Price * NYSE (2019-04-23) in USD $13.83
United States of America Mortgage REITs Industry PB Ratio Median Figure of 36 Publicly-Listed Mortgage REITs Companies 0.99x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:TWO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TWO Share Price ÷ Book Value per Share (both in USD)

= 13.83 ÷ 13.21

1.05x

* Primary Listing of Two Harbors Investment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Two Harbors Investment is overvalued based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess Two Harbors Investment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. Two Harbors Investment has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TWO Future Performance

 How is Two Harbors Investment expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Two Harbors Investment expected to grow at an attractive rate?
  • Two Harbors Investment's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Two Harbors Investment's earnings growth is expected to exceed the United States of America market average.
  • Two Harbors Investment's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TWO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TWO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 61.6%
NYSE:TWO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -2.9%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 26.6%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 18.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TWO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TWO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 524
2020-12-31 294 437 3
2019-12-31 330 457 4
NYSE:TWO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 316 703 -110
2018-09-30 850 709 614
2018-06-30 822 690 681
2018-03-31 749 648 546
2017-12-31 519 607 283
2017-09-30 554 1,334 439
2017-06-30 578 760 473
2017-03-31 572 534 465
2016-12-31 551 240 318
2016-09-30 572 -973 223
2016-06-30 457 -1,130 70
2016-03-31 620 -1,555 308

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Two Harbors Investment's earnings are expected to grow significantly at over 20% yearly.
  • Two Harbors Investment's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TWO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Two Harbors Investment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TWO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 1.95 1.95 1.95 1.00
2020-12-31 1.75 2.20 1.33 4.00
2019-12-31 1.74 2.16 1.37 5.00
NYSE:TWO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.53
2018-09-30 3.27
2018-06-30 3.89
2018-03-31 3.12
2017-12-31 1.62
2017-09-30 2.52
2017-06-30 2.71
2017-03-31 2.68
2016-12-31 1.83
2016-09-30 1.27
2016-06-30 0.39
2016-03-31 1.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Two Harbors Investment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Two Harbors Investment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Two Harbors Investment has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TWO Past Performance

  How has Two Harbors Investment performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Two Harbors Investment's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Two Harbors Investment does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Two Harbors Investment's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Two Harbors Investment's 1-year growth to the US Mortgage REITs industry average as it is not currently profitable.
Earnings and Revenue History
Two Harbors Investment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Two Harbors Investment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TWO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 315.90 -109.69 37.07
2018-09-30 849.59 613.88 33.59
2018-06-30 822.43 681.22 49.08
2018-03-31 748.80 545.65 47.67
2017-12-31 518.71 283.12 46.67
2017-09-30 554.12 439.09 42.09
2017-06-30 578.07 472.54 42.84
2017-03-31 571.89 465.38 45.13
2016-12-31 550.89 317.92 46.76
2016-09-30 572.26 222.58 54.04
2016-06-30 457.12 70.01 54.67
2016-03-31 620.42 308.49 54.12
2015-12-31 717.98 492.07 53.52
2015-09-30 530.68 244.54 55.47
2015-06-30 758.20 472.92 55.21
2015-03-31 597.12 291.08 55.61
2014-12-31 357.39 167.14 55.40
2014-09-30 597.92 442.78 54.68
2014-06-30 125.29 55.59 54.26
2014-03-31 503.64 403.56 53.06
2013-12-31 695.35 575.04 43.81
2013-09-30 712.29 518.27 40.01
2013-06-30 934.14 741.35 36.03
2013-03-31 479.14 377.91 31.19
2012-12-31 325.62 287.42 33.17
2012-09-30 160.78 157.03 28.92
2012-06-30 215.73 182.16 24.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Two Harbors Investment has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Two Harbors Investment has efficiently used its assets last year compared to the US Mortgage REITs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Two Harbors Investment improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Two Harbors Investment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Two Harbors Investment has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TWO Health

 How is Two Harbors Investment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Two Harbors Investment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Two Harbors Investment's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Two Harbors Investment's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Two Harbors Investment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Two Harbors Investment Company Filings, last reported 3 months ago.

NYSE:TWO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,254.49 25,412.95 1,491.55
2018-09-30 4,675.98 26,062.71 1,585.46
2018-06-30 3,480.25 18,563.54 675.43
2018-03-31 3,467.69 20,362.83 662.50
2017-12-31 3,571.42 21,000.96 729.08
2017-09-30 4,131.38 23,415.42 777.67
2017-06-30 3,784.11 19,760.81 892.21
2017-03-31 3,602.56 20,472.10 658.67
2016-12-31 3,401.11 15,984.88 675.05
2016-09-30 3,478.24 18,083.20 887.43
2016-06-30 3,418.07 16,942.43 916.17
2016-03-31 3,370.69 13,076.52 952.67
2015-12-31 3,576.56 10,800.67 1,009.34
2015-09-30 3,772.74 13,765.17 1,108.57
2015-06-30 3,971.57 14,160.01 1,280.90
2015-03-31 4,061.50 17,275.60 1,382.98
2014-12-31 4,068.04 16,732.36 1,386.58
2014-09-30 4,118.10 14,717.61 1,579.17
2014-06-30 4,058.51 13,470.21 1,514.30
2014-03-31 3,919.00 13,153.00 1,969.85
2013-12-31 3,855.00 12,912.26 1,575.35
2013-09-30 3,773.05 12,874.97 1,267.68
2013-06-30 3,834.12 15,312.20 1,616.58
2013-03-31 4,065.08 13,887.22 1,652.46
2012-12-31 3,450.58 12,753.80 1,283.19
2012-09-30 3,391.48 14,166.65 1,330.40
2012-06-30 2,182.66 10,521.06 857.75
  • Two Harbors Investment's level of debt (597.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (335% vs 597.3% today).
  • Debt is not well covered by operating cash flow (2.8%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Two Harbors Investment's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Two Harbors Investment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Two Harbors Investment has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TWO Dividends

 What is Two Harbors Investment's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.59%
Current annual income from Two Harbors Investment dividends. Estimated to be 13.59% next year.
If you bought $2,000 of Two Harbors Investment shares you are expected to receive $272 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Two Harbors Investment's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Two Harbors Investment's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TWO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 10.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TWO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.88 2.00
2020-12-31 1.88 7.00
2019-12-31 1.88 8.00
NYSE:TWO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-19 1.880 13.744
2018-12-18 1.880 13.523
2018-03-20 1.980 12.997
2017-12-14 2.010 12.966
2017-02-28 1.860 9.722
2017-02-06 1.860 10.246
2016-09-15 1.840 10.696
2016-06-16 1.840 10.502
2016-03-15 1.840 11.360
2015-12-16 2.080 13.343
2015-09-16 2.080 11.998
2015-06-17 2.080 10.546
2015-03-18 2.080 9.815
2014-12-16 2.080 10.114
2014-09-16 2.080 10.268
2014-02-27 2.340 11.238
2014-02-05 2.340 11.638
2013-02-28 3.420 16.584
2013-02-06 3.420 13.718
2012-09-12 2.880 12.320
2012-06-12 3.200 14.463
2012-03-14 3.200 15.565
2011-12-14 3.200 16.374
2011-09-14 3.200 17.496
2011-06-14 3.200 16.017
2011-03-02 3.200 15.168
2011-02-08 2.960 13.781
2010-12-08 3.200 16.180
2010-09-13 3.120 16.630
2010-06-14 2.640 15.536
2010-03-12 2.880 16.340
2009-12-21 2.080 11.103

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Two Harbors Investment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Two Harbors Investment has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Two Harbors Investment's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Two Harbors Investment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Two Harbors Investment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Two Harbors Investment has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TWO Management

 What is the CEO of Two Harbors Investment's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Siering
COMPENSATION $3,831,581
AGE 58
TENURE AS CEO 9.5 years
CEO Bio

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 Corp. He has been a Partner and Head of Fundamental Strategies at Pine River Capital Management L.P. since 2006. Mr. Siering served as the Head of the Value Investment Group at EBF & Associates in Minnetonka, MN from 1989 to 2006. He joined EBF & Associates in 1989 as a trader and was named a Partner in 1997. Mr. Siering served as a Portfolio Manager at Merced Partners, LP and Tamarack International Limited from 1999 to 2006. He supervised a staff of thirteen people located both in Minnesota and London. Mr. Siering held various trading positions in the financial markets department at Cargill Inc. from 1987 to 1989. He was employed in the Domestic Soybean Processing Division at Cargill in both trading and managerial roles from 1981 to 1987. Mr. Siering has been Director of Two Harbors Investment Corp. since May 2009. He has been a Director of Granite Point Mortgage Trust Inc. since May 2017. Mr. Siering serves as a Director of Pine River Foundation. He served as a Director of Silver Bay Realty Trust Corp. since 2012. He holds a B.B.A. with a major in Finance from the University of Iowa.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Two Harbors Investment management team in years:

6.2
Average Tenure
56
Average Age
  • The average tenure for the Two Harbors Investment management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Tom Siering

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
58
TENURE
9.5 yrs

Mary Riskey

TITLE
VP, CFO & Chief Accounting Officer
COMPENSATION
$296K
AGE
54
TENURE
0.5 yrs

Bill Roth

TITLE
Chief Investment Officer & Director
COMPENSATION
$2M
AGE
61
TENURE
6.3 yrs

Rebecca Sandberg

TITLE
VP, General Counsel & Secretary
COMPENSATION
$836K
AGE
46
TENURE
6.1 yrs

Alecia Hanson

TITLE
Managing Director of Human Resources
TENURE
0.3 yrs

Matt Koeppen

TITLE
MD & Co-Deputy Chief Investment Officer
TENURE
6.4 yrs

Bill Greenberg

TITLE
MD & Co-Deputy Chief Investment Officer
TENURE
6.4 yrs

Victor Baev

TITLE
Managing Director
TENURE
6.3 yrs

Bob Rush

TITLE
MD & Chief Risk Officer
TENURE
5.6 yrs

Jeffrey Hurley

TITLE
Managing Director
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Two Harbors Investment board of directors in years:

5.4
Average Tenure
62
Average Age
  • The tenure for the Two Harbors Investment board of directors is about average.
Board of Directors

Steven, Steve Kasnet

TITLE
Chairman of the Board
COMPENSATION
$250K
AGE
72

Tom Siering

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
58
TENURE
9.9 yrs

Bill Roth

TITLE
Chief Investment Officer & Director
COMPENSATION
$2M
AGE
61
TENURE
3.9 yrs

Hope Woodhouse

TITLE
Independent Director
COMPENSATION
$200K
AGE
61
TENURE
6.9 yrs

Jim Bender

TITLE
Independent Director
COMPENSATION
$200K
AGE
61
TENURE
5.9 yrs

E. Abraham

TITLE
Independent Director
COMPENSATION
$200K
AGE
65
TENURE
4.9 yrs

William Sanders

TITLE
Independent Director
COMPENSATION
$200K
AGE
68
TENURE
9.5 yrs

Karen Hammond

TITLE
Independent Director
COMPENSATION
$114K
AGE
62
TENURE
0.8 yrs

Jim Stern

TITLE
Independent Director
COMPENSATION
$114K
AGE
67
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Two Harbors Investment insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Feb 19 Buy Thomas Siering Individual 20. Feb 19 20. Feb 19 3,500 $13.80 $48,290
19. Nov 18 Sell Brad Farrell Individual 15. Nov 18 15. Nov 18 -4,000 $14.28 $-57,121
13. Nov 18 Buy Thomas Siering Individual 12. Nov 18 12. Nov 18 3,500 $14.41 $50,418
20. Aug 18 Sell James Bender Individual 17. Aug 18 17. Aug 18 -3,460 $15.60 $-53,976
16. Aug 18 Buy Thomas Siering Individual 15. Aug 18 15. Aug 18 5,000 $15.41 $77,041
X
Management checks
We assess Two Harbors Investment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Two Harbors Investment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TWO News

Simply Wall St News

Who Has Been Buying Two Harbors Investment Corp. (NYSE:TWO) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … Two Harbors Investment Insider Transactions Over The Last Year.

Simply Wall St -

Volatility 101: Should Two Harbors Investment Shares Have Dropped 34%?

(NYSE:TWO), since the last five years saw the share price fall 34%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over five years Two Harbors Investment's earnings per share dropped significantly, falling to a loss, with the share price also lower.

Simply Wall St -

These Factors Make Two Harbors Investment Corp (NYSE:TWO) An Interesting Investment

Two Harbors Investment Corp (NYSE:TWO) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of TWO, it.

Simply Wall St -

Is Two Harbors Investment Corp's (NYSE:TWO) CEO Pay Justified?

Tom Siering took the helm as Two Harbors Investment Corp's (NYSE:TWO) CEO and grew market cap to US$3.78b recently. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Should You Buy Two Harbors Investment Corp (NYSE:TWO)?

Two Harbors Investment Corp (NYSE:TWO), a mortgage reits company based in United States, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $14.69 to $15.79. … What’s more interesting is that, Two Harbors Investment’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Is Two Harbors Investment Corp (NYSE:TWO) A Great Dividend Stock?

Two Harbors Investment Corp (NYSE:TWO) has returned to shareholders over the past 8 years, an average dividend yield of 13.00% annually. … View our latest analysis for Two Harbors Investment 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Does it pay an annual yield higher than 75% of dividend payers? … NYSE:TWO Historical Dividend Yield May 18th 18 How does Two Harbors Investment fare?

Simply Wall St -

Two Harbors Investment Corp's (NYSE:TWO) Earnings Dropped -10.95%, How Did It Fare Against The Industry?

For Two Harbors Investment, its most recent trailing-twelve-month earnings is US$283.12M, which, against the previous year's figure, has plunged by -10.95%. … Revenue growth in the last couple of years, has been positive, however, earnings growth has not been able to catch up, meaning Two Harbors Investment has been growing its expenses by a lot more. … You should continue to research Two Harbors Investment to get a better picture of the stock by looking at: 1.

Simply Wall St -

Is Two Harbors Investment Corp (NYSE:TWO) A Real Estate Leader?

Two Harbors Investment Corp (NYSE:TWO), a USD$2.73B mid-cap, is a real estate company operating in an industry which remains the single largest sector globally, and has continued to play a key role in investor portfolios as an asset class. … Today, I will analyse the industry outlook, and also determine whether Two Harbors Investment is a laggard or leader relative to its real estate sector peers. … Two Harbors Investment is a REIT industry laggard in terms of its future growth outlook, and is trading relatively in-line with its peers.

Simply Wall St -

Should You Be Content With Two Harbors Investment Corp's (NYSE:TWO) 131.3% Earnings Growth?

After looking at Two Harbors Investment Corp's (NYSE:TWO) latest earnings announcement (30 September 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Check out our latest analysis for Two Harbors Investment Did TWO beat its long-term earnings growth trend and its industry? … This means on average, Two Harbors Investment has been able to gradually raise its profits over the past couple of years as well.

Simply Wall St -

Does Two Harbors Investment Corp's (TWO) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TWO Price per share = 15.34 Earnings per share = 2.932 ∴ Price-Earnings Ratio = 15.34 ÷ 2.932 = 5.2x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since TWO's P/E of 5.2x is lower than its industry peers (8.4x), it means that investors are paying less than they should for each dollar of TWO's earnings. … For example, if you are inadvertently comparing lower risk firms with TWO, then TWO’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

TWO Company Info

Description

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 prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime 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 would not be subject to federal income tax, if it distributes at least 90% of net taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in New York, New York.

Details
Name: Two Harbors Investment Corp.
TWO
Exchange: NYSE
Founded: 2009
$3,773,140,375
272,822,876
Website: http://www.twoharborsinvestment.com
Address: Two Harbors Investment Corp.
575 Lexington Avenue,
Suite 2930,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TWO Common Stock New York Stock Exchange US USD 29. Oct 2009
DB 2H2A Common Stock Deutsche Boerse AG DE EUR 29. Oct 2009
MUN 2H2A Common Stock Boerse Muenchen DE EUR 29. Oct 2009
NYSE TWO.PRA PFD SER A New York Stock Exchange US USD 09. Mar 2017
NYSE TWO.PRB 7.625% PFD B FXD New York Stock Exchange US USD 13. Jul 2017
NYSE TWO.PRD 7.75% CM PFD D New York Stock Exchange US USD 02. Aug 2018
NYSE TWO.PRE 7.50% CM PFD E New York Stock Exchange US USD 01. Aug 2018
Number of employees
Current staff
Staff numbers
0
Two Harbors Investment employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 00:22
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.