Two Harbors Investments Corp (TWO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Two Harbors Investments Corp stock (TWO) is currently trading at $11.32. Two Harbors Investments Corp PS ratio (Price-to-Sales) is 3.04. Analyst consensus price target for TWO is $11.88. WallStSmart rates TWO as Sell.
- TWO PE ratio analysis and historical PE chart
- TWO PS ratio (Price-to-Sales) history and trend
- TWO intrinsic value — DCF, Graham Number, EPV models
- TWO stock price prediction 2025 2026 2027 2028 2029 2030
- TWO fair value vs current price
- TWO insider transactions and insider buying
- Is TWO undervalued or overvalued?
- Two Harbors Investments Corp financial analysis — revenue, earnings, cash flow
- TWO Piotroski F-Score and Altman Z-Score
- TWO analyst price target and Smart Rating
Two Harbors Investments Corp
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Smart Analysis
Two Harbors Investments Corp (TWO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, institutional own.. Concerns around return on equity and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
Two Harbors Investments Corp (TWO) Key Strengths (3)
Trading below book value, meaning the market prices it less than net assets
73.88% of shares held by major funds and institutions
Strong operational efficiency: $22 kept per $100 revenue
Supporting Valuation Data
Two Harbors Investments Corp (TWO) Areas to Watch (7)
Company is destroying shareholder value
Revenue declining -48.50%, a shrinking business
Earnings declining -76.30%, profits shrinking
Company is losing money with a negative profit margin
Paying a premium for growth, expensive relative to earnings expansion
Small-cap company with higher risk but more growth potential
Revenue is fairly priced at 3.04x sales
Supporting Valuation Data
Two Harbors Investments Corp (TWO) Detailed Analysis Report
Overall Assessment
This company scores 43/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.3/10) while 7 fall into concern territory (avg 2.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Book, Institutional Own., Operating Margin. Valuation metrics including Price/Book (0.95) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 22.00%.
The Bear Case
The primary concerns are Return on Equity, Revenue Growth, EPS Growth. Some valuation metrics including PEG Ratio (2.76), Price/Sales (3.04) suggest expensive pricing. Growth concerns include Revenue Growth at -48.50%, EPS Growth at -76.30%, which may limit upside. Profitability pressure is visible in Return on Equity at -23.20%, Profit Margin at -122.80%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -23.20% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -48.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Revenue Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TWO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TWO's Price-to-Sales ratio of 3.04x trades at a deep discount to its historical average of 39.55x (43th percentile). The current valuation is 99% below its historical high of 376.77x set in Nov 2010, and 204% above its historical low of 1x in Apr 2020. Over the past 12 months, the PS ratio has expanded from ~1.6x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Two Harbors Investments Corp (TWO) · REAL ESTATE › REIT - MORTGAGE
The Big Picture
Two Harbors Investments Corp is in a turnaround phase, with management focused on restoring profitability. Revenue reached 370M with 49% decline year-over-year. The company is currently unprofitable, posting a -122.8% profit margin.
Key Findings
Generating 115M in free cash flow and 117M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 49% YoY. Worth determining whether this is cyclical or structural.
The company is unprofitable with a -122.8% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Dividend sustainability with a current yield of 14.1%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor REIT - MORTGAGE industry trends, competitive moves, and regulatory changes that could impact Two Harbors Investments Corp.
Bottom Line
Two Harbors Investments Corp is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(15 last 3 months)
| Insider | Type | Shares |
|---|---|---|
HALM, JILLIAN Chief Accounting Officer | Sell | -379 |
| Insider | Type | Shares |
|---|---|---|
BOUCHER, NATHAN EVP General Counsel RoundPoint | Sell | -601 |
| Insider | Type | Shares |
|---|---|---|
GREENBERG, WILLIAM ROSS Director, Chief Executive Officer | Sell | -154,593 |
Data sourced from SEC Form 4 filings
Last updated: 10:12:20 AM
About Two Harbors Investments Corp(TWO)
NYSE
REAL ESTATE
REIT - MORTGAGE
USA
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.