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Two Harbors Investment Corp
NYSE:TWO

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Two Harbors Investment Corp Logo
Two Harbors Investment Corp
NYSE:TWO
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Price: 12.68 USD -0.7% Market Closed
Updated: Mar 19, 2024

Intrinsic Value

TWO's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

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%.

Key Points:
TWO Intrinsic Value
Base Case
43.26 USD
Undervaluation 71%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Two Harbors Investment Corp

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Analyze the historical link between intrinsic value and market price to make more informed investment decisions.

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Fundamental Analysis

Bright Outlook with Wise Capital Allocation
2023-Q4 Earnings Call

Bright Outlook with Wise Capital Allocation

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Table
What is Free Cash Flow?
Fundamental Scores

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.

54/100
Profitability
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.

Long-Term Solvency
Positive Net Debt
Short-Term Solvency
High D/E
9/100
Solvency
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

Wall Street analysts forecast TWO stock price to rise over the next 12 months.

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.

Lowest
Price Target
13.13 USD
4% Upside
Average
Price Target
14.54 USD
15% Upside
Highest
Price Target
15.75 USD
24% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

TWO Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

TWO Price
Two Harbors Investment Corp

1M 1M
-1%
6M 6M
-10%
1Y 1Y
-4%
3Y 3Y
-43%
5Y 5Y
-62%
10Y 10Y
-46%
Annual Price Range
12.68
52w Low
9.86
52w High
14.37
Price Metrics
Average Annual Return -13.01%
Standard Deviation of Annual Returns 32.55%
Max Drawdown -85%
Shares Statistics
Market Capitalization 1.3B USD
Shares Outstanding 103 427 000
Percentage of Shares Shorted 3.08%

TWO Return Decomposition
Main factors of price return

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TWO News

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Company Profile

Two Harbors Investment Corp Logo
Two Harbors Investment Corp

Country

United States of America

Industry

Real Estate

Market Cap

1.3B USD

Dividend Yield

14.1%

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

MINNESOTA
Saint Louis Park
1601 Utica Avenue South, Suite 900
+16124534100.0
http://www.twoharborsinvestment.com/

IPO

2009-10-29

Employees

105

Officers

President, CEO & Director
Mr. William Ross Greenberg
VP & CFO
Ms. Mary Kathryn Riskey
VP & Chief Investment Officer
Mr. Nicholas Letica
VP, Chief Legal Officer, Secretary & Chief Compliance Officer
Ms. Rebecca B. Sandberg
VP & Chief Risk Officer
Mr. Robert Rush
VP & COO
Mr. Jason Vinar
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VP & CTO
Mr. Matt Keen
VP & Chief Administrative Officer
Ms. Alecia Hanson
Head of Investor Relations
Ms. Margaret Field Karr
VP & Treasurer
Ms. Sheila Lichty
Show Less

See Also

Discover More
What is the Intrinsic Value of one TWO stock?

The intrinsic value of one TWO stock under the Base Case scenario is 43.26 USD.

Is TWO stock undervalued or overvalued?

Compared to the current market price of 12.68 USD, Two Harbors Investment Corp is Undervalued by 71%.