Latest Ratios: P/E Ratio -2.8x · EV/EBITDA 197.6x · ROE -23.2%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| 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 → | -2.79 | — | 4.99 | — | 7.40 | 13.42 | — | 15.72 | — | 8.98 | 7.07 |
| P/S Ratio | 2.11 | 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 | — | — | 15.40 | 43.17 | — | — | 189.50 | 8.84 | — | 24.97 | — |
| P/OCF | 14.39 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 197.61 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.40 | 27.31 |
| EV / EBIT | 21.63 | 193.53 | 10.41 | 18.78 | 19.27 | 33.73 | — | 4.44 | 7.14 | 6.42 | 16.90 |
| EV / FCF | — | — | 114.19 | 340.64 | — | — | 143.93 | 10.26 | — | 33.94 | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | — | — | 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 13.5% | 15.6% | 14.0% | 14.8% | 15.5% | 15.0% | 11.4% | 11.8% | 10.2% | 13.8% | 13.4% |
| Payout Ratio | — | — | 62.9% | — | 106.9% | 137.3% | — | 143.0% | — | 121.3% | 93.9% |
| 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 | — | — | 6.5% | 2.3% | — | — | 0.5% | 11.3% | — | 4.0% | — |
| Buyback Yield | 0.0% | 0.0% | 0.8% | 1.6% | 3.4% | 16.0% | 0.1% | 0.0% | 0.0% | 0.0% | 2.5% |
| Total Shareholder Yield | 13.5% | 15.6% | 14.9% | 16.5% | 18.9% | 30.9% | 11.5% | 11.8% | 10.2% | 13.8% | 15.8% |
| Shares Outstanding | — | $104M | $113M | $96M | $96M | $75M | $68M | $67M | $52M | $47M | $44M |
Includes 30+ ratios · 19 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TWO stock.
Two Harbors Investment Corp.'s current P/E ratio is -2.8x. The historical average is 21.7x.
Two Harbors Investment Corp.'s current EV/EBITDA is 197.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.7x.
Two Harbors Investment Corp.'s return on equity (ROE) is -23.2%. The historical average is 3.0%.
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.
Two Harbors Investment Corp.'s current dividend yield is 13.47%.
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.
Two Harbors Investment Corp.'s Debt/EBITDA ratio is 188.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Dividend sustainability concerns
Metrics are mathematically derived from official filings.
Discount to Book Masks MSR Value
TWO trades at 0.70x book value, a discount to AGNC's 0.88x and NLY's 0.90x, suggesting the market may undervalue its MSR platform, as per current market data.
The P/FFO of 16.25x in 2026Q2 is elevated relative to peers like AGNC (7.26x P/E) and NLY (7.76x P/E), but this comparison is misleading given TWO's MSR-heavy model. The implied cap rate, derived from NOI and enterprise value, appears distorted by the accounting treatment of revenue, making direct cap rate comparisons unreliable. Investors should focus on the potential for the MSR platform to generate fee-based income, which may justify a higher multiple than traditional mREITs.
NOI Margin Distortions Obscure Core Trends
NOI margins exceeded 100% in most quarters, peaking at 110.4% in 2024Q3, indicating revenue understatement relative to property-level income, a common mREIT reporting artifact, as per financial statements.
The negative net margin of -75.0% in 2026Q2 reflects mark-to-market losses on RMBS and hedges, not operational deterioration. FFO per share improved 51% sequentially to $0.53, suggesting core earnings are recovering, but the sustainability of this improvement is uncertain given the volatile interest rate environment. The high NOI margins are an accounting artifact; analysts should rely on FFO and AFFO trends to gauge true profitability.
Payout Ratio Tightens but Cushion Remains
FFO payout ratio improved to 63.3% in 2026Q2 from 95.8% in 2026Q1, providing a modest cushion, but the 13.6% dividend yield signals market concern, as per reported figures.
AFFO of $55.3M covered dividends of $48.9M in 2026Q2, a 0.63 payout ratio, but the prior quarter's ratio was 0.96, indicating thin coverage. The negative net margin and ROE of -23.2% (trailing) suggest that the dividend may be partially funded by return of capital, which is unsustainable long-term. Investors should monitor whether FFO growth can be maintained to support the dividend.
Leverage Appears Understated
Reported debt/equity of 3.79x in 2026Q2 is below the peer average of 6-8x, but this may understate true leverage due to off-balance-sheet repo financing, as per balance sheet data.
Interest coverage of 0.76x in 2026Q2 is weak, indicating that earnings are insufficient to cover interest expenses, a red flag for an mREIT. The surge in cash to $5.7B in 2026Q2 from $476M in 2026Q1 suggests asset sales or refinancing activity, but the underlying leverage may be higher than reported. The debt maturity profile is not disclosed, but the reliance on short-term repo financing exposes TWO to refinancing risk in a rising rate environment.
MSR Integration Reshapes Asset Mix
The portfolio is transitioning from pure Agency RMBS to a hybrid model with MSRs, as evidenced by the RoundPoint acquisition, which may enhance recapture rates but adds operational complexity, as per SEC filings.
Occupancy rates are not applicable for a mortgage REIT, but the asset mix shift toward MSRs provides a natural hedge against rising rates, as prepayment speeds slow. G&A efficiency appears to be improving with the internalization of management, but the fixed-cost base of the servicing platform may pressure margins if origination volumes decline. The geographic concentration in US residential housing is a vulnerability, but it is mitigated by the government guarantee on Agency RMBS.
P/E Misleads in Mortgage REITs
Standard P/E is distorted by depreciation and mark-to-market volatility, making it meaningless for TWO; P/FFO or P/AFFO are the appropriate valuation metrics, as per industry practice.
The negative P/E of -2.76 reflects GAAP losses from non-cash items, not economic reality. Similarly, EV/EBITDA of 197.27 is inflated because EBITDA is not a meaningful metric for a financial asset holder. Investors should use P/FFO and P/AFFO, which adjust for non-cash items and provide a clearer picture of cash-generating ability. The P/B of 0.70x is more relevant but may still undervalue the MSR platform's fee income potential.