Two Harbors Investment Corp

Find Ratings Reports
TWO : NYSE : Financial
$8.725 -0.045 | -0.51%
Today's Range: 8.72 - 8.79
Avg. Daily Volume: 2501200.0
01/24/17 - 3:59 PM ET

Financial Analysis

TWO HARBORS INVESTMENT CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has decreased by 7.80% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit

Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)194.23204.97
EBITDA ($mil)157.23166.64
EBIT ($mil)156.91166.29
Net Income ($mil)117.79-34.79

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)953.291195.87
Total Assets ($mil)21799.917785.31
Total Debt ($mil)18043.2813683.7
Equity ($mil)3478.243772.74

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin80.9581.3
EBITDA Margin80.9481.3
Operating Margin80.7981.13
Sales Turnover0.030.05
Return on Assets1.021.37
Return on Equity6.396.48
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Interest Expense54.770.0
Interest Coverage2.870.0

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)347.64366.16
Div / share0.230.26
Book value / share10.0110.3
Institutional Own % n/a n/a
Avg Daily Volume2505319.01963084.0


HOLD. TWO HARBORS INVESTMENT CORP's P/E ratio indicates a significant discount compared to an average of 33.77 for the Mortgage REITs industry and a significant discount compared to the S&P 500 average of 25.41. Conducting a second comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 0.94. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, TWO HARBORS INVESTMENT CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TWO 13.94 Peers 33.77   TWO NM Peers 11.85

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TWO is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TWO 8.96 Peers 10.08   TWO NM Peers 0.60

Average. An average price-to-projected earnings ratio can signify an industry 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.

TWO's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TWO 0.88 Peers 0.94   TWO -5.98 Peers 187.71

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.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TWO 4.77 Peers 4.52   TWO -28.44 Peers 7.75

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



Latest Stock Upgrades/Downgrades