Two Harbors Investment CorpFind Ratings Reports
TWO HARBORS INVESTMENT CORP's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not.
During the same period, stockholders' equity ("net worth") has decreased by 13.93% from the same quarter last year.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||72.42||241.52|
|Net Income ($mil)||-16.98||221.5|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1055.35||1344.48|
|Total Assets ($mil)||20740.44||18447.72|
|Total Debt ($mil)||16781.71||14137.54|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||48.7||84.86|
|Return on Assets||0.33||2.56|
|Return on Equity||2.04||11.9|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||347.62||367.53|
|Div / share||0.23||0.26|
|Book value / share||9.83||10.81|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1860173.0||2857229.0|
SELL. TWO HARBORS INVESTMENT CORP's P/E ratio indicates a significant premium compared to an average of 27.49 for the Mortgage REITs industry and a significant premium compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 0.96. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, TWO HARBORS INVESTMENT CORP seems to be trading at a premium to investment alternatives within the industry.
|TWO 44.85||Peers 27.49||TWO NM||Peers 13.67|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
TWO is trading at a significant premium to its peers.
Neutral. 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's P/CF is negative making the measure meaningless.
|TWO 9.44||Peers 22.28||TWO NM||Peers 1.75|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
TWO is trading at a significant discount to 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.
TWO's negative PEG ratio makes this valuation measure meaningless.
|TWO 0.91||Peers 0.96||TWO -84.50||Peers -819.41|
Average. 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 valuation on par with its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
TWO is expected to have an earnings growth rate that significantly exceeds its peers.
|TWO 4.79||Peers 4.50||TWO -28.87||Peers 6.22|
Average. 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 valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
TWO significantly trails its peers on the basis of sales growth