Two Harbors Investment Corp. (TWO) 10-Year Financial Performance & Capital Metrics

TWO • • REIT / Real Estate

Real EstateMortgage REITsResidential Mortgage REITsNon-Agency MBS & Whole Loan Investors

AboutTwo 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.Show more

Revenue $846M +229.0%
FFO $252M +336.6%
FFO/Share 2.43 +318.4%
FFO Payout 74.57% +140.1%
FFO per Share 2.43 +318.4%
NOI Margin 104.55% +66.3%
FFO Margin 29.75% +171.9%
ROE 11.64% +339.9%
ROA 1.99% +348.4%
Debt/Assets 74.67% -1.3%
Net Debt/EBITDA 24.97 +1101.6%
Book Value/Share 20.48 -11.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓High NOI margin of 104.5%
✓Trading at only 0.7x book value

✗Weaknesses

✗High debt to equity ratio of 4.3x

Price & Volume

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Growth Metrics

Revenue CAGR

10Y16.45%

5Y14.62%

3Y-

TTM72.88%

Profit (Net Income) CAGR

10Y4.18%

5Y-4.92%

3Y10.36%

TTM51.11%

EPS CAGR

10Y-4.3%

5Y-8.57%

3Y11.28%

TTM48.13%

ROCE

10Y Avg4.05%

5Y Avg6.03%

3Y Avg10.05%

Latest8.53%

Peer Comparison

Non-Agency MBS & Whole Loan Investors

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MFAOMFA Financial, Inc. 9.000% Senior Notes	2.61B	25.58	31.20	19.47%	34.47%	7.04%	7.66%	4.99
MFANMFA Financial, Inc. 8.875% Senior Notes	2.6B	25.47	31.06	19.47%	34.47%	7.04%	7.7%	4.99
MFAMFA Financial, Inc.	1.01B	9.91	12.09	19.47%	34.47%	7.04%	19.76%	4.99
AOMRAngel Oak Mortgage, Inc.	227.96M	9.15	7.82	-6.21%	30.71%	6.68%		7.41
TWOTwo Harbors Investment Corp.	1.39B	13.35	5.63	229.02%	-17.84%	-11.35%	6.25%	4.29

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	599.15M	484.64M	392.39M	185.73M	427.56M	-862.56M	-142.91M	12.61M	257.08M	845.84M
Revenue Growth %	2.25%	-0.19%	-0.19%	-0.53%	1.3%	-3.02%	0.83%	1.09%	19.39%	2.29%
Property Operating Expenses	64.16M	63.48M	54.16M	91.41M	57.05M	66.35M	63.8M	94.12M	95.49M	-38.46M
Net Operating Income (NOI)+	-	-	-	-	-	-	-	-	-	-
NOI Margin %	-	-	-	-	-	-	-	-	-	-
Operating Expenses+	45.56M	40.48M	382.69M	33.31M	60.44M	69.46M	35.04M	40.72M	52.87M	89.75M
G&A Expenses	50.29M	46.43M	40.47M	30.27M	60.1M	37.72M	35.04M	40.72M	52.87M	89.75M
EBITDA+	493.57M	751.18M	848.31M	1.13B	1.88B	-1.38B	-142.91M	12.61M	559.83M	344.75M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization+	1.36M	163.7M	540.07M	615.18M	1.57B	0	-423.5M	-570.24M	0	0
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income+	492.21M	587.48M	308.24M	517.2M	310.4M	-1.38B	280.59M	582.85M	559.83M	951.08M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense+	142.19M	221.9M	350.19M	519.67M	714.33M	281.25M	89.17M	258.39M	643.23M	607.81M
Interest Coverage	3.46x	2.65x	0.88x	1.00x	0.43x	-4.90x	3.15x	2.26x	0.87x	1.56x
Non-Operating Income	151.21M	467.14M	144.4M	-328.22M	0	0	0	0	-451.11M	0
Pretax Income+	475.72M	365.58M	297.76M	-2.47M	310.4M	-1.67B	191.42M	324.45M	-83.39M	344.75M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	-16.49M	12.3M	-10.48M	41.82M	-13.56M	-35.69M	4.19M	104.21M	22.98M	46.59M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	492.21M	353.28M	348.57M	-44.29M	323.96M	-1.63B	187.23M	220.24M	-106.37M	251.68M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	1.94%	-0.28%	-0.01%	-1.13%	8.31%	-6.03%	1.11%	0.18%	-1.48%	3.37%
Funds From Operations (FFO)+	-	-	-	-	-	-	-	-	-	-
FFO Margin %	-	-	-	-	-	-	-	-	-	-
FFO Growth %	1.92%	0.05%	0.72%	-0.36%	2.32%	-1.84%	0.85%	-0.48%	-	-
FFO per Share+	-	-	-	-	-	-	-	-	-	-
FFO Payout Ratio %	-	-	-	-	-	-	-	-	-	-
EPS (Diluted)+	10.80	8.08	7.24	-0.86	3.71	-24.94	1.72	2.13	-1.60	2.37
EPS Growth %	1.93%	-0.25%	-0.1%	-1.12%	5.31%	-7.72%	1.07%	0.24%	-1.75%	2.48%
EPS (Basic)	10.80	8.08	7.40	-0.86	3.71	-24.94	1.72	2.15	-1.60	2.41
Diluted Shares Outstanding	45.66M	43.51M	47.03M	51.51M	66.96M	68.4M	74.51M	96.08M	95.67M	103.64M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	14.58B	20.11B	24.79B	30.13B	35.92B	19.52B	12.11B	13.47B	13.14B	12.2B
Asset Growth %	-0.31%	0.38%	0.23%	0.22%	0.19%	-0.46%	-0.38%	0.11%	-0.02%	-0.07%
Real Estate & Other Assets+	-8.32B	-111.64M	-50.42M	-27.55B	-33.32B	-16.25B	-9.35B	-10.76B	0	-270K
PP&E (Net)	2.69M	1.92M	1.23M	-2.59B	-2.61B	-3.27B	-2.76B	-2.7B	0	0
Investment Securities	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	270K
Total Current Assets+	8.61B	13.6B	21.71B	26.2B	32.38B	16.23B	2.63B	2.63B	1.72B	8.3B
Cash & Equivalents	737.83M	406.88M	419.16M	409.76M	558.14M	1.38B	1.15B	683.48M	729.73M	504.61M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	0	0	-2.05B	0	-67.39M	50.25M	-7.7B	0
Intangible Assets	493.69M	693.82M	1.09B	1.99B	1.91B	1.6B	2.19B	2.98B	3.05B	2.99B
Total Liabilities	11B	16.71B	21.22B	25.88B	30.95B	16.43B	9.37B	11.28B	10.94B	10.08B
Total Debt+	5.79B	7.11B	1.52B	1.46B	1.19B	965.62M	1.24B	10.44B	9.93B	9.11B
Net Debt	5.05B	6.7B	1.1B	1.05B	631.32M	-419.14M	88.51M	1.12B	1.16B	8.61B
Long-Term Debt	5.79B	7.04B	1.5B	1.15B	889.46M	681.79M	821.6M	1.6B	563.85M	1.96B
Short-Term Borrowings	0	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	0	0	702.54M	977.5M	977.5M	977.5M	702.55M	631M	613.21M	0
Total Current Liabilities+	18.72M	99.5M	107.7M	470M	449.63M	15.3B	8.22B	9.19B	2.25B	793.36M
Accounts Payable	18.72M	28.85M	87.7M	160M	149.63M	21.67M	18.38M	94.03M	141.77M	85.99M
Deferred Revenue	-5B	0	0	0	0	0	0	0	0	0
Other Liabilities	-5.79B	-7.04B	-1.22B	-1.15B	-889.46M	-681.79M	-821.6M	498.2M	-295.27M	465.79M
Total Equity+	3.58B	18.61B	23.49B	27.75B	4.97B	3.09B	2.74B	2.18B	2.2B	2.12B
Equity Growth %	-0.12%	4.2%	0.26%	0.18%	-0.82%	-0.38%	-0.11%	-0.2%	0.01%	-0.04%
Shareholders Equity	3.58B	3.4B	3.57B	4.25B	4.97B	3.09B	2.74B	2.18B	2.2B	2.12B
Minority Interest	0	15.21B	19.91B	23.49B	28.72B	14.72B	7.74B	9.28B	0	0
Common Stock	3.54M	3.48M	1.75M	2.48M	2.73M	2.74M	3.44M	864K	1.03M	1.04M
Additional Paid-in Capital	3.71B	3.66B	3.67B	4.81B	5.15B	5.16B	5.63B	5.65B	5.93B	5.94B
Retained Earnings	-491.56M	-461.57M	-1.14B	-1.65B	-1.85B	-3.7B	-3.77B	-3.82B	-4.16B	-4.1B
Preferred Stock	0	0	702.54M	977.5M	977.5M	977.5M	702.55M	631M	613.21M	601.47M
Return on Assets (ROA)	0.03%	0.02%	0.02%	-0%	0.01%	-0.06%	0.01%	0.02%	-0.01%	0.02%
Return on Equity (ROE)	0.13%	0.03%	0.02%	-0%	0.02%	-0.4%	0.06%	0.09%	-0.05%	0.12%
Debt / Assets	0.4%	0.35%	0.06%	0.05%	0.03%	0.05%	0.1%	0.78%	0.76%	0.75%
Debt / Equity	1.62x	0.38x	0.06x	0.05x	0.24x	0.31x	0.45x	4.78x	4.51x	4.29x
Net Debt / EBITDA	10.23x	8.92x	1.30x	0.93x	0.34x	-	-	88.52x	2.08x	24.97x
Book Value per Share	78.34	427.84	499.34	538.76	74.23	45.16	36.83	22.73	23.03	20.48

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-1.94B	239.68M	606.78M	702.87M	1.06B	631.6M	423.51M	623.4M	343.51M	201M
Operating CF Growth %	-1.53%	1.12%	1.53%	0.16%	0.5%	-0.4%	-0.33%	0.47%	-0.45%	-0.41%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	492.21M	353.28M	308.24M	-44.29M	323.96M	-1.63B	187.23M	220.24M	-106.37M	297.12M
Depreciation & Amortization	1.36M	1.28M	969K	0	24.91M	40.27M	-5.96M	79.79M	0	0
Stock-Based Compensation	9M	15.2M	11.33M	12.99M	9.16M	9.73M	11.48M	11.63M	10.98M	10.95M
Other Non-Cash Items	-2.34B	-267.01M	273.38M	643.1M	744.69M	2.4B	191.58M	55.22M	381.43M	-28.94M
Working Capital Changes	3.19M	16.72M	23.89M	91.07M	-21.18M	-143.82M	33.22M	151.27M	57.47M	-78.12M
Cash from Investing+	7.99B	-5.82B	-9.48B	4.79B	-6.08B	14.9B	6.31B	-2.75B	-195.78M	895.28M
Acquisitions (Net)	123.67M	317.71M	484.26M	-13.55M	613.66M	622.41M	742.15M	0	26.8M	-20.98M
Purchase of Investments	-1.88B	-21.34B	-18.37B	-12.71B	-24.73B	-8.3B	-2.49B	-10.73B	-1.64B	-2.14B
Sale of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	-275.87M	-230.56M	-1.47B	493.81M	-75.37M	-442.5M	-704.75M	-410.27M	-1.92B	48.56M
Cash from Financing+	-6.32B	5.25B	9.12B	-5.45B	5.54B	-14.51B	-7.3B	1.17B	-479.4M	-1.07B
Dividends Paid	-381.59M	-331.87M	-436.06M	-329.02M	-538.95M	-275.29M	-257.15M	-290.36M	-246.6M	-235.05M
Common Dividends	-381.59M	-331.87M	-422.88M	-270.63M	-463.15M	-199.49M	-193.49M	-235.37M	-197.64M	-187.68M
Debt Issuance (Net)	1000K	1000K	1000K	-1000K	1000K	-1000K	-1000K	1000K	1000K	-1000K
Share Repurchases	-115.17M	-61.31M	0	0	-19K	-1.06M	-274.95M	-51.4M	-21.87M	-11.1M
Other Financing	-7.92B	4.31B	1.85B	-5.06B	0	-14B	0	946.57M	-582.8M	-438.5M
Net Change in Cash+	-267.96M	-330.95M	239.8M	42.77M	519.06M	1.03B	-557.76M	-962.16M	-331.67M	22.81M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	1.01B	737.83M	815.2M	1.05B	1.1B	1.62B	2.65B	2.09B	1.13B	794.83M
Cash at End	737.83M	406.88M	1.05B	1.1B	1.62B	2.65B	2.09B	1.13B	794.83M	817.64M
Free Cash Flow+	-2.06B	-78.03M	122.52M	-273.52M	442.97M	9.2M	-318.64M	-6.41M	343.51M	86.88M
FCF Growth %	-1.48%	0.96%	2.57%	-3.23%	2.62%	-0.98%	-35.65%	0.98%	54.61%	-0.75%
FCF / Revenue %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
FFO per Share	10.81	11.88	18.89	11.08	28.34	-23.24	-3.17	-3.64	-1.11	2.43
FFO Payout Ratio	77.31%	64.19%	47.59%	47.4%	24.4%	-12.55%	-81.89%	-67.25%	-185.8%	74.57%
NOI Margin	89.29%	86.9%	86.2%	50.78%	86.66%	188.78%	-133.94%	-646.62%	62.86%	104.55%
Net Debt / EBITDA	10.23x	8.92x	1.30x	0.93x	0.34x	-	-	88.52x	2.08x	24.97x
Debt / Assets	39.69%	35.34%	6.12%	4.84%	3.31%	4.95%	10.26%	77.5%	75.61%	74.67%
Interest Coverage	3.46x	2.65x	0.88x	1.00x	0.43x	-4.90x	3.15x	2.26x	0.87x	1.56x
Book Value / Share	78.34	427.84	499.34	538.76	74.23	45.16	36.83	22.73	23.03	20.48
Revenue Growth	224.68%	-19.11%	-19.04%	-52.67%	130.21%	-301.74%	83.43%	108.82%	1939.32%	229.02%

Frequently Asked Questions

Valuation & Price

Two Harbors Investment Corp. (TWO) has a price-to-earnings (P/E) ratio of 5.6x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Two Harbors Investment Corp. (TWO) reported $1.13B in revenue for fiscal year 2024. This represents a 530% increase from $178.9M in 2011.

Two Harbors Investment Corp. (TWO) grew revenue by 229.0% over the past year. This is strong growth.

Two Harbors Investment Corp. (TWO) reported a net loss of $201.1M for fiscal year 2024.

Dividend & Returns

Yes, Two Harbors Investment Corp. (TWO) pays a dividend with a yield of 13.57%. This makes it attractive for income-focused investors.

Two Harbors Investment Corp. (TWO) has a return on equity (ROE) of 11.6%. This is reasonable for most industries.

Industry Metrics

Two Harbors Investment Corp. (TWO) offers a 13.57% dividend yield, which is attractive for income investors. REITs are required to distribute at least 90% of taxable income to shareholders.

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