Two Harbors Investment Corp
Find Ratings ReportsTWO HARBORS INVESTMENT CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 45.95 | -151.19 |
EBITDA ($mil) | 0.0 | 0.0 |
EBIT ($mil) | -3.67 | -188.58 |
Net Income ($mil) | -433.2 | -270.22 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1078.92 | 2193.44 |
Total Assets ($mil) | 13138.8 | 13466.16 |
Total Debt ($mil) | 9913.23 | 10402.35 |
Equity ($mil) | 2203.39 | 2183.53 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | -7.98 | 124.73 |
EBITDA Margin | 0.0 | 0.0 |
Operating Margin | -7.98 | 124.73 |
Sales Turnover | 0.07 | 0.05 |
Return on Assets | -0.8 | 1.63 |
Return on Equity | -7.03 | 7.63 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.82 | 0.83 |
Interest Expense | 307.31 | 115.63 |
Interest Coverage | -0.01 | -1.63 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 103.21 | 86.43 |
Div / share | 0.45 | 0.0 |
EPS | -4.56 | -3.04 |
Book value / share | 21.35 | 25.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1448204.0 | 1297696.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.59 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 0.75. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, TWO HARBORS INVESTMENT CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TWO NM | Peers 210.66 | TWO 3.80 | Peers 8.06 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. TWO's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TWO is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TWO 6.27 | Peers 7.39 | TWO NA | Peers 0.27 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. TWO is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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TWO 0.59 | Peers 0.75 | TWO -221.95 | Peers -12.52 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TWO is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TWO is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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TWO 1.33 | Peers 4.58 | TWO 36.57 | Peers 280.60 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TWO is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. TWO significantly trails its peers on the basis of sales growth. |
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