NYSE:TWO

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Executive Summary

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. More Details


Snowflake Analysis

High growth potential second-rate dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

TWO

-2.6%

US Mortgage REITs

-2.4%

US Market


1 Year Return

-62.4%

TWO

-38.7%

US Mortgage REITs

18.2%

US Market

Return vs Industry: TWO underperformed the US Mortgage REITs industry which returned -37.5% over the past year.

Return vs Market: TWO underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

TWOIndustryMarket
7 Day-2.8%-2.6%-2.4%
30 Day-2.1%-3.7%4.2%
90 Day-5.7%0.3%6.3%
1 Year-58.8%-62.4%-31.9%-38.7%20.9%18.2%
3 Year-55.3%-74.0%-21.4%-43.5%41.2%31.8%
5 Year-35.6%-70.0%16.7%-32.8%84.8%63.9%

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

Valuation

Is Two Harbors Investment undervalued compared to its fair value and its price relative to the market?

0.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TWO ($5.17) is trading above our estimate of fair value ($4.02)

Significantly Below Fair Value: TWO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TWO is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: TWO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TWO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TWO's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.


Next Steps

Future Growth

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

112.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TWO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TWO's is expected to become profitable in the next 3 years.

Revenue vs Market: TWO's revenue (32.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: TWO's revenue (32.4% per year) is forecast to grow faster than 20% 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%).


Next Steps

Past Performance

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

-54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWO is currently unprofitable.

Growing Profit Margin: TWO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWO is unprofitable, and losses have increased over the past 5 years at a rate of 54.3% per year.

Accelerating Growth: Unable to compare TWO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TWO is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-36.7%).


Return on Equity

High ROE: TWO has a negative Return on Equity (-56.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Two Harbors Investment's financial position?


Financial Position Analysis

Short Term Liabilities: TWO's short term assets ($2.4B) do not cover its short term liabilities ($17.4B).

Long Term Liabilities: TWO's short term assets ($2.4B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: TWO's debt to equity ratio (632.4%) is considered high.

Reducing Debt: TWO's debt to equity ratio has increased from 356.7% to 632.4% over the past 5 years.

Debt Coverage: TWO's debt is not well covered by operating cash flow (3.8%).

Interest Coverage: Insufficient data to determine if TWO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

10.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TWO's dividend (10.83%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: TWO's dividend (10.83%) is in the top 25% of dividend payers in the US market (4.66%)


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: TWO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: TWO's dividends in 3 years are forecast to be covered by earnings (80.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Bill Greenberg (53 yo)

0.33

Tenure

Mr. William Ross Greenberg, also known as Bill, serves as President and Chief Executive Officer at Two Harbors Investment Corp. since June 24, 2020 and serves as its Director since September 21, 2020. Mr. ...


Leadership Team

NamePositionTenureCompensationOwnership
Mary Riskey
VP & CFO2yrsUS$574.84k0.041%
$ 580.6k
Rebecca Sandberg
VP, General Counsel & Secretary7.58yrsUS$905.07k0.077%
$ 1.1m
William Greenberg
President0.33yrno data0.068%
$ 968.3k
Matthew Koeppen
VP & Chief Investment Officer0.33yrno data0.062%
$ 876.1k
Matt Keen
MD & CTO0.75yrno datano data
Alecia Hanson
Managing Director of Human Resources1.75yrsno datano data
Robert Rush
MD & Chief Risk Officer7.08yrsno datano data
Jason Vinar
Managing Director3.75yrsno datano data
Sheila Lichty
VP & Treasurer1.67yrsno datano data
Margaret Field Karr
Investor Relationsno datano datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: TWO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Greenberg
President0.33yrno data0.068%
$ 968.3k
Stephen Kasnet
Independent Chairman of the Boardno dataUS$261.25k0.041%
$ 576.5k
James Bender
Independent Director7.42yrsUS$199.99k0.019%
$ 269.7k
James Stern
Independent Director2.25yrsUS$199.99k0.037%
$ 519.0k
William Sanders
Independent Director11yrsUS$199.99k0.039%
$ 548.6k
E. Abraham
Independent Director6.42yrsUS$199.99k0.018%
$ 254.0k
Hope Woodhouse
Independent Director8.42yrsUS$199.99k0.024%
$ 345.4k
Thomas Siering
Non-Independent Director11.42yrsUS$740.61k0.41%
$ 5.8m
Karen Hammond
Independent Director2.25yrsUS$199.99k0.026%
$ 364.1k

6.9yrs

Average Tenure

64yo

Average Age

Experienced Board: TWO's board of directors are considered experienced (6.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Two Harbors Investment Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Two Harbors Investment Corp.
  • Ticker: TWO
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$1.415b
  • Shares outstanding: 273.71m
  • Website: https://www.twoharborsinvestment.com

Location

  • Two Harbors Investment Corp.
  • 575 Lexington Avenue
  • Suite 2930
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2009
2H2ADB (Deutsche Boerse AG)YesCommon StockDEEUROct 2009
TWO.PRANYSE (New York Stock Exchange)PFD SER AUSUSDMar 2017
TWO.PRBNYSE (New York Stock Exchange)7.625% PFD B FXDUSUSDJul 2017
TWO.PRENYSE (New York Stock Exchange)7.50% CM PFD EUSUSDAug 2018
TWO.PRDNYSE (New York Stock Exchange)7.75% CM PFD DUSUSDAug 2018

Biography

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, mo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:41
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.