Two Harbors Investment Corp. (TWO) Financial Ratios
19 years of historical data (2007–2025) · Real Estate · REIT - Mortgage
EV/EBITDA
↑
197.70
↑+259% vs avg
5yr avg: 55.15
30Y Low0.4·High59.8
P/FCF
↓
14.44
↓-39% vs avg
5yr avg: 23.62
30Y Low4.9·High189.5
P/B Ratio
↓
0.71
+12% vs avg
5yr avg: 0.63
30Y Low0.4·High1.6
ROE
↓
-23.2%
↑-11066% vs avg
5yr avg: 0.2%
30Y Low-40%·High16%
Debt/EBITDA
↑
188.01
↑+255% vs avg
5yr avg: 52.96
30Y Low1.0·High49.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TWO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Two Harbors Investment Corp. currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 14.4x P/FCF, 39% below the 5-year average of 23.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.1B | $1.3B | $1.3B | $1.5B | $1.7B | $1.7B | $3.9B | $2.6B | $3.1B | $2.5B |
| Enterprise Value | $9.0B | $8.8B | $9.9B | $10.5B | $11.2B | $9.5B | $1.3B | $4.5B | $3.7B | $4.2B | $9.2B |
| P/E Ratio → | -2.80 | — | 4.99 | — | 7.40 | 13.42 | — | 15.72 | — | 8.98 | 7.07 |
| P/S Ratio | 2.12 | 1.81 | 1.58 | 2.08 | 120.19 | — | — | 2.06 | 3.74 | 3.65 | 4.98 |
| P/B Ratio | 0.71 | 0.61 | 0.63 | 0.60 | 0.69 | 0.63 | 0.56 | 0.79 | 0.62 | 0.86 | 0.73 |
| P/FCF | 14.44 | 12.30 | 15.40 | 43.17 | — | — | 189.50 | 8.84 | — | 24.97 | — |
| P/OCF | 14.44 | 12.30 | 6.66 | 3.88 | 2.43 | 4.06 | 2.76 | 3.71 | 3.76 | 5.04 | 10.36 |
P/E links to full P/E history page with 30-year chart
TWO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Two Harbors Investment Corp.'s enterprise value stands at 197.7x EBITDA, 259% above its 5-year average of 55.1x. The Real Estate sector median is 17.0x, placing the stock at a 1063% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 14.54 | 11.73 | 16.42 | 891.16 | — | — | 2.39 | 5.22 | 4.96 | 18.41 |
| EV / EBITDA | 197.70 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.40 | 27.31 |
| EV / EBIT | 21.64 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.42 | 16.90 |
| EV / FCF | — | 99.06 | 114.19 | 340.64 | — | — | 143.93 | 10.26 | — | 33.94 | — |
TWO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Two Harbors Investment Corp. earns an operating margin of 68.7%, significantly above the Real Estate sector average of 24.8%. Operating margins have compressed from 87.4% to 68.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. A negative ROE of -23.2% indicates the company is currently destroying shareholder equity. ROIC of 3.1% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 97.9% | 97.9% | 104.5% | 88.4% | -646.6% | 160.4% | 114.6% | 92.9% | 87.1% | 90.9% | 85.2% |
| Operating Margin | 68.7% | 68.7% | 112.4% | 87.4% | 4623.6% | -196.3% | 159.9% | 54.7% | 86.5% | 77.4% | 67.2% |
| Net Profit Margin | -75.0% | -75.0% | 35.3% | -16.6% | 1747.1% | -131.0% | 189.0% | 17.1% | -6.3% | 41.6% | 70.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -23.2% | -23.2% | 13.8% | -4.8% | 8.9% | 6.4% | -40.5% | 7.0% | -1.1% | 10.0% | 10.1% |
| ROA | -3.9% | -3.9% | 2.4% | -0.8% | 1.7% | 1.2% | -5.9% | 1.0% | -0.2% | 1.6% | 2.0% |
| ROIC | 3.1% | 3.1% | 6.5% | 3.6% | 3.9% | 3.2% | -25.0% | 14.3% | 9.2% | 6.6% | 2.7% |
| ROCE | 16.9% | 16.9% | 34.0% | 18.5% | 17.2% | 2.4% | -5.0% | 3.2% | 2.3% | 2.9% | 1.9% |
TWO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Two Harbors Investment Corp. carries a Debt/EBITDA ratio of 188.0x, which is highly leveraged (2274% above the sector average of 7.9x). Net debt stands at $7.7B ($8.6B total debt minus $842M cash). Interest coverage of just 0.1x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 4.79 | 4.79 | 4.28 | 4.50 | 4.76 | 3.24 | 0.31 | 0.24 | 0.34 | 0.42 | 2.09 |
| Debt / EBITDA | 188.01 | 188.01 | 9.54 | 17.71 | 17.85 | 31.71 | — | 1.16 | 2.82 | 2.34 | 21.13 |
| Net Debt / Equity | — | 4.31 | 4.04 | 4.17 | 4.45 | 2.82 | -0.14 | 0.13 | 0.25 | 0.31 | 1.97 |
| Net Debt / EBITDA | 169.50 | 169.50 | 9.01 | 16.40 | 16.67 | 27.60 | — | 0.62 | 2.03 | 1.69 | 19.92 |
| Debt / FCF | — | 86.76 | 98.79 | 297.47 | — | — | -45.57 | 1.43 | — | 8.97 | — |
| Interest Coverage | 0.09 | 0.09 | 1.57 | 0.87 | 2.26 | 3.15 | -4.92 | 1.43 | 1.00 | 1.85 | 2.45 |
TWO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.13x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.90x to 0.13x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.13 | 0.13 | 0.85 | 0.90 | 0.86 | 1.11 | 53.12 | 72.01 | 55.75 | 209.39 | 137.27 |
| Quick Ratio | 0.13 | 0.13 | 0.85 | 0.90 | 0.86 | 1.11 | 53.12 | 72.01 | 55.75 | 209.39 | 137.27 |
| Cash Ratio | 0.10 | 0.10 | 0.82 | 0.89 | 0.81 | 0.99 | 52.49 | 71.09 | 55.24 | 200.93 | 136.03 |
| Asset Turnover | — | 0.06 | 0.07 | 0.05 | 0.00 | -0.01 | -0.04 | 0.05 | 0.02 | 0.03 | 0.02 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
TWO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Two Harbors Investment Corp. returns 13.6% to shareholders annually — split between a 13.4% dividend yield and 0.1% buyback yield.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 13.4% | 15.6% | 14.0% | 14.8% | 15.5% | 11.3% | 11.4% | 11.8% | 10.2% | 13.8% | 13.4% |
| Payout Ratio | — | — | 62.9% | — | 106.9% | 103.3% | — | 143.0% | — | 121.3% | 93.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 20.0% | — | 13.5% | 7.5% | — | 6.4% | — | 11.1% | 14.2% |
| FCF Yield | 6.9% | 8.1% | 6.5% | 2.3% | — | — | 0.5% | 11.3% | — | 4.0% | — |
| Buyback Yield | 0.1% | 0.2% | 0.8% | 1.6% | 3.4% | 16.0% | 0.1% | 0.0% | 0.0% | 0.0% | 2.5% |
| Total Shareholder Yield | 13.6% | 15.8% | 14.9% | 16.5% | 18.9% | 27.2% | 11.5% | 11.8% | 10.2% | 13.8% | 15.8% |
| Shares Outstanding | — | $104M | $113M | $96M | $96M | $75M | $68M | $67M | $52M | $47M | $44M |
Peer Comparison
Compare TWO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TWOYou | $1B | -2.8 | 197.7 | 14.4 | 97.9% | 68.7% | -23.2% | 3.1% | 188.0 |
 AGNC | $12B | 7.1 | 2.1 | 17.9 | 100.0% | 236.3% | 15.1% | 33.8% | 0.0 |
 NLY | $16B | 7.6 | 18.3 | — | 99.9% | 102.6% | 14.1% | 6.4% | 16.3 |
 DX | $2B | 5.2 | 20.2 | 16.1 | 100.0% | 138.4% | 17.5% | 4.8% | 18.8 |
 MFA | $956M | 5.6 | 17.0 | 12.5 | 96.2% | 78.8% | 9.6% | 4.4% | 15.9 |
 IVR | $568M | 5.2 | 19.1 | 3.6 | 96.7% | 94.5% | 13.3% | 4.0% | 17.5 |
 ARR | $2B | 5.0 | 20.7 | 16.5 | 97.0% | 73.9% | 17.8% | 6.8% | 18.6 |
 ORC | $1B | 5.3 | 22.6 | 8.3 | 97.8% | 88.6% | 15.6% | 2.1% | 22.0 |
 PMT | $865M | 10.0 | 209.8 | — | 15.4% | 9.1% | 6.7% | 0.4% | 203.5 |
 MITT | $248M | 8.7 | 18.2 | 4.2 | 94.7% | 96.9% | 8.8% | 4.5% | 17.9 |
 EFC | $1B | 11.2 | 39.4 | 2.6 | 84.3% | 61.6% | 8.5% | 3.1% | 37.0 |
| Real Estate Median | — | 24.1 | 17.0 | 15.4 | 49.3% | 24.8% | 3.7% | 2.7% | 7.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 19 years · Updated daily
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TWO — Frequently Asked Questions
Quick answers to the most common questions about buying TWO stock.
What is Two Harbors Investment Corp.'s P/E ratio?
Two Harbors Investment Corp.'s current P/E ratio is -2.8x. The historical average is 21.7x.
What is Two Harbors Investment Corp.'s EV/EBITDA?
Two Harbors Investment Corp.'s current EV/EBITDA is 197.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.7x.
What is Two Harbors Investment Corp.'s ROE?
Two Harbors Investment Corp.'s return on equity (ROE) is -23.2%. The historical average is 3.0%.
Is TWO stock overvalued?
Based on historical data, Two Harbors Investment Corp. is trading at a P/E of -2.8x. Compare with industry peers and growth rates for a complete picture.
What is Two Harbors Investment Corp.'s dividend yield?
Two Harbors Investment Corp.'s current dividend yield is 13.42%.
What are Two Harbors Investment Corp.'s profit margins?
Two Harbors Investment Corp. has 97.9% gross margin and 68.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Two Harbors Investment Corp. have?
Two Harbors Investment Corp.'s Debt/EBITDA ratio is 188.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.