Two Harbors Investment Corp. (TWO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Ladder Capital Corp.

Two Harbors Investment Corp.

Why is Two Harbors Investment Corp. ?

The company declared negative results in Mar'25 after positive results in Dec'24

OPERATING CASH FLOW(Y) Lowest at USD 277.04 MM
PRE-TAX PROFIT(Q) At USD -57.44 MM has Fallen at -181.44%
NET PROFIT(Q) At USD -59.11 MM has Fallen at -204.92%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.18%, its profits have fallen by -95%
At the current price, the company has a high dividend yield of 1175

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.18% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Two Harbors Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Two Harbors Investment Corp.

-33.69%

-0.79

29.11%

S&P 500

17.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.41%

EBIT Growth (5y)

18.28%

EBIT to Interest (avg)

1.74

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

69.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

74.02%

ROCE (avg)

39.97%

ROE (avg)

5.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.54

EV to EBIT

0.44

EV to EBITDA

0.44

EV to Capital Employed

0.20

EV to Sales

0.31

PEG Ratio

Dividend Yield

440.03%

ROCE (Latest)

44.50%

ROE (Latest)

-5.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

Higher at USD 58.59 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 88.91 MM

PRE-TAX PROFIT(Q)

At USD 17.29 MM has Fallen at -94.38%

NET PROFIT(Q)

At USD 11.45 MM has Fallen at -95.84%

ROCE(HY)

Lowest at -23.25%

RAW MATERIAL COST(Y)

Grown by 5.22% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.83 times

DIVIDEND PER SHARE(HY)

Lowest at USD 1.83

NET SALES(Q)

Fallen at -18.26%

Here's what is not working for Two Harbors Investment Corp.

Pre-Tax Profit

At USD 17.29 MM has Fallen at -94.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 11.45 MM has Fallen at -95.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 88.91 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Fallen at -18.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 1.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 1.83

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 5.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales