TWO:NYE-Two Harbors Investment Corp (USD)

COMMON STOCK | REIT-Mortgage | NYE

Last Closing Price

USD 6.36

Change

-0.01 (-0.16)%

Market Cap

USD 2.01B

Volume

4.51M

Avg Analyst Target

USD 7.50 (+17.92%)

Avg User Target

USD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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); and other assets, such as financial and mortgage-related assets, including non-agency securities 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 Minnetonka, Minnesota.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-08-03 )

Largest Industry Peers for REIT-Mortgage

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
NLY-PG Annaly Capital Management, Inc

N/A

USD14.18B 11.37 N/A
NLY-PF Annaly Capital Management, Inc

-0.09 (-0.34%)

USD13.61B 11.36 N/A
NLY-PD Annaly Capital Management, Inc

N/A

USD13.12B N/A N/A
NLY Annaly Capital Management, Inc

N/A

USD12.26B 3.70 N/A
STWD Starwood Property Trust, Inc

+0.12 (+0.46%)

USD7.47B 14.65 N/A
BXMT Blackstone Mortgage Trust, Inc

+0.10 (+0.31%)

USD4.77B 12.38 N/A
NRZ New Residential Investment Cor..

+0.03 (+0.31%)

USD4.55B 7.73 N/A
CIM-PC Chimera Investment Corporation

-0.35 (-1.35%)

USD3.67B 11.59 N/A
CIM-PB Chimera Investment Corporation

-0.09 (-0.34%)

USD3.65B 11.79 N/A
CIM-PA Chimera Investment Corporation

+0.02 (+0.08%)

USD3.52B 11.42 N/A

ETFs Containing TWO

Symbol Name Weight Mer Price(Change) Market Cap
MORL UBS ETRACS Monthly Pay 2x.. 0.00 % 0.40 %

N/A

USD0.24B
MORT VanEck Vectors Mortgage R.. 0.00 % 0.40 %

+0.05 (+0.27%)

USD0.34B
MRRL UBS ETRACS Monthly Pay 2x.. 0.00 % 0.40 %

N/A

USD0.29B
SRET Global X SuperDividend RE.. 0.00 % 0.59 %

N/A

USD0.51B

Market Performance

  Market Performance vs.
Industry/Classification (REIT-Mortgage)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -0.16% 15% F 26% F
Dividend Return 5.34% 71% C- 93% A
Total Return 5.18% 17% F 35% F
Trailing 12 Months  
Capital Gain 18.22% 35% F 40% F
Dividend Return 12.08% 75% C 96% A
Total Return 30.30% 40% F 49% F
Trailing 5 Years  
Capital Gain -64.03% 17% F 6% F
Dividend Return 38.57% 17% F 92% A-
Total Return -25.45% 9% F 12% F
Average Annual (5 Year Horizon)  
Capital Gain -15.92% 6% F 4% F
Dividend Return 9.64% 75% C 97% A+
Total Return -6.29% 4% F 7% F
Risk Return Profile  
Volatility (Standard Deviation) 37.01% 44% F 27% F
Risk Adjusted Return -16.99% 4% F 8% F
Market Capitalization 2.01B 69% D+ 60% D-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(REIT-Mortgage)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 4.42 78% C+ 92% A-
Price/Book Ratio 1.01 39% F 75% C
Price / Cash Flow Ratio 3.18 87% B+ 70% C-
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 17.06% 66% D 77% C+
Return on Invested Capital 2.10% 80% B- 39% F
Return on Assets 2.51% 51% F 53% F
Debt to Equity Ratio 9.62% 89% B+ 87% B+
Technical Ratios  
Short Ratio 1.74 57% F 57% F
Short Percent 9.53% 9% F 29% F
Beta 1.82 34% F 16% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

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User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.