Two Harbors Investment Corp
NYSE:TWO
Intrinsic Value
Two Harbors Investment Corp. is a real estate investment trust, which invests in, finances, and manages agency residential mortgage-backed securities, mortgage servicing rights, and other financial as... [ Read More ]
The intrinsic value of one TWO stock under the Base Case scenario is 43.26 USD. Compared to the current market price of 12.68 USD, Two Harbors Investment Corp is Undervalued by 71%.
Valuation Backtest
Two Harbors Investment Corp
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Fundamental Analysis
Bright Outlook with Wise Capital Allocation
2023-Q4 Earnings Call
The company saw a quarterly economic return of 2.0%, with book value per share at $15.21 and comprehensive income of $38.9 million. RoundPoint Mortgage Servicing acquisition strengthens MSR commitment, expected to boost pretax income by $25 million in 2024. Equity raised in February totaled $176 million, investing in MSR to comprise 62% of capital allocation. Considering market volatility and interest rate dynamics, the company remains cautious, concentrating efforts on building a robust direct-to-consumer platform and avoiding significant risk or leverage increase.
Balance Sheet Decomposition
Two Harbors Investment Corp
Current Assets | 1.1B |
Cash & Short-Term Investments | 729.7m |
Receivables | 358.6m |
Non-Current Assets | 12.1B |
Long-Term Investments | 11.7B |
Other Non-Current Assets | 387.2m |
Current Liabilities | 8.8B |
Accrued Liabilities | 141.8m |
Short-Term Debt | 8B |
Other Current Liabilities | 633.5m |
Non-Current Liabilities | 2.1B |
Long-Term Debt | 1.9B |
Other Non-Current Liabilities | 246.9m |
Earnings Waterfall
Two Harbors Investment Corp
Revenue
|
770m
USD
|
Cost of Revenue
|
-738.7m
USD
|
Gross Profit
|
31.2m
USD
|
Operating Expenses
|
-88.8m
USD
|
Operating Income
|
-57.6m
USD
|
Other Expenses
|
-95.6m
USD
|
Net Income
|
-153.2m
USD
|
Free Cash Flow Analysis
Two Harbors Investment Corp
What is Free Cash Flow?
TWO Profitability Score
Profitability Due Diligence
Two Harbors Investment Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
Score
Two Harbors Investment Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
TWO Solvency Score
Solvency Due Diligence
Two Harbors Investment Corp's solvency score is 9/100. The higher the solvency score, the more solvent the company is.
Score
Two Harbors Investment Corp's solvency score is 9/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
TWO Price Targets Summary
Two Harbors Investment Corp
According to Wall Street analysts, the average 1-year price target for TWO is 14.54 USD with a low forecast of 13.13 USD and a high forecast of 15.75 USD.
Ownership
TWO Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
TWO Price
Two Harbors Investment Corp
Average Annual Return | -13.01% |
Standard Deviation of Annual Returns | 32.55% |
Max Drawdown | -85% |
Market Capitalization | 1.3B USD |
Shares Outstanding | 103 427 000 |
Percentage of Shares Shorted | 3.08% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Two Harbors Investment Corp. is a real estate investment trust, which invests in, finances, and manages agency residential mortgage-backed securities, mortgage servicing rights, and other financial assets. The company is headquartered in Saint Louis Park, Minnesota and currently employs 105 full-time employees. The company went IPO on 2009-10-29. The firm is focused on investing in, financing and managing Agency residential mortgage-backed securities (Agency RMBS), mortgage servicing rights (MSR) and other financial assets. Its investment objective is to provide risk-adjusted total return to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. The company acquires and manages an investment portfolio of its target assets, which includes Agency RMBS, whose principal and interest payments are guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac), MSR and other financial assets. The firm is externally managed and advised by PRCM Advisers LLC (PRCM Advisers).
Contact
IPO
Employees
Officers
The intrinsic value of one TWO stock under the Base Case scenario is 43.26 USD.
Compared to the current market price of 12.68 USD, Two Harbors Investment Corp is Undervalued by 71%.