Two Harbors Investment (TWO) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Two Harbors Investment

NYSE•Real Estate•REIT - Mortgage

$12.18+0.13(0.01%)Pre-market

Market Cap

$1.28B

P/B

0.7x

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, comprising non-agency securities and non-hedging transactions. It qualifies as a REIT for federal income tax purposes. The company was incorporated in 2009 and is headquartered in Saint Louis Park, Minnesota. As of August 25, 2026, Two Harbors Investment Corp. operates as a subsidiary of CrossCountry Mortgage, LLC.

How this company scores

WeakMetricSide Score: 53/100

Grade capped at D — Interest coverage below 1× (0.8x) — earnings cannot cover interest. Strongest: Growth (18/25); weakest: Balance Sheet & Red Flags (7/25).

Profitability14/25

Growth18/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality14/25

Strengths

Growing revenueLong cash runwayCash-backed earningsProfit converts from growth

Grade capped at D

Interest coverage below 1× (0.8x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 81.0x5y range 2.1x – 81.0x

Currently above its 12-quarter median.

P/S · 28.1x5y range 8.0x – 28.1x

Currently above its 6-quarter median.

P/B · 0.7x5y range 0.3x – 0.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $1.28B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $-51.53M
Q. Revenue: $-6.02M
TTM EBITDA: $135.47M
TTM Op. Income: $135.47M
Q. Op. Income: $68.44M
TTM Net Income: $-21.68M
Q. Net Income: $62.24M
EPS: $0.47
Shares Out.: $104.94M

$-51.53M in TTM revenue grew 56.0% YoY, reaching $-6.02M last quarter. TTM EBITDA of $135.47M and TTM operating income of $135.47M show growth is flowing through to the bottom line. However, net income is negative at $21.68M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: N/A
Op. Margin: -1136.7%
Net Margin: -1033.8%

Op. margin of -1136.7% is down 1678.8% YoY — costs are rising relative to revenue. Net margin at -1033.8% Across the last 8 quarters, operating margin has fallen for 4 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: N/A
P/B Ratio: 0.7x

P/S of 0.0x and P/B of 0.7x. Over the past year, P/E is up 0% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $8.83B
Cash: $642.69M
Long-Term Debt: $6.62B
Book Value: $1.74B
D/E Ratio: 3.8
Debt/EBITDA: 96.7

With $8.83B in assets and $6.62B in long-term debt, D/E is 3.8and book value is $1.74B — elevated leverage, meaning significant financial risk in a downturn. Across the last 5 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $192.74M
TTM Free Cash Flow: $127.22M
FCF Margin: N/A
FCF / Net Income: -5.9

TTM FCF of $127.22M on $192.74M in operating cash flow. The FCF / Net Income ratio of -5.9x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 54% — an improving trend.