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Two Harbors Investment (NYSE:TWO)

US90187B8046

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Two Harbors Investment stock research in summary

twoharborsinvestment.com

ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Two Harbors Investment (REITs: Mortgage, USA) shares have lower financial characteristics compared with similar stocks. Shares of Two Harbors Investment are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), show above-average growth (Growth Rank of 77) but are riskily financed (Safety Rank of 17), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Two Harbors Investment's financial characteristics. As the company Two Harbors Investment's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 97) and above-average growth (Obermatt Growth Rank of 77), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 17) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	97
Growth Rank	77
Safety Rank	17
Combined Rank	18

Country	USA
Industry	REITs: Mortgage
Index
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Two Harbors Investment

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	83	96	97
GROWTH
GROWTH	6	1	63	77
SAFETY
SAFETY	13	17	17	17
SENTIMENT
SENTIMENT	n/a	7	15	^new
360° VIEW
360° VIEW	n/a	9	78	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Two Harbors Investment is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	91	83	96	97
GROWTH
GROWTH	6	1	63	77
SAFETY
SAFETY	13	17	17	17
COMBINED
COMBINED	28	18	18	18

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Two Harbors Investment the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2022, Two Harbors Investment shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Two Harbors Investment. Price-to-Sales is 72 which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value for Two Harbors Investment's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 88% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 68. Compared with other companies in the same industry, dividend yields of Two Harbors Investment are expected to be higher than for 98% of all competitors (a Dividend Yield rank of 98). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on Two Harbors Investment's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Two Harbors Investment based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	63	11	87	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	97	75	88
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	68	91	69	68
DIVIDEND YIELD
DIVIDEND YIELD	100	95	96	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91	83	96	97

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Two Harbors Investment; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2022, Two Harbors Investment shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Two Harbors Investment. Sales Growth has a rank of 100, which means that, currently, professionals expect the company to grow more than 100% of its competitors. Profit Growth with a rank of 100 is also above average. But Capital Growth has only a rank of 27, and Stock Returns with 31 are also below-average. Stock returns for Two Harbors Investment have recently been below 69% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 77, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Two Harbors Investment. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	3	4	98	100
PROFIT GROWTH
PROFIT GROWTH	n/a	25	11	100
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	81	27
STOCK RETURNS
STOCK RETURNS	58	7	29	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	6	1	63	77

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Two Harbors Investment.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 17 (better than 17% compared with alternatives), the company Two Harbors Investment has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Two Harbors Investment is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Two Harbors Investment and the other two below average. Refinancing is at 96, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 96% of its competitors. But Leverage is high with a rank of 10, meaning the company has an above-average debt-to-equity ratio. It has more debt than 90% of its competitors. Liquidity is also on the riskier side with a rank of 12, meaning the company generates less profit to service its debt than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 17 (worse than 83% compared with alternatives), Two Harbors Investment has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Two Harbors Investment are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Two Harbors Investment and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	1	8	8	10
REFINANCING
REFINANCING	100	96	96	96
LIQUIDITY
LIQUIDITY	6	19	6	12
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	13	17	17	17

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Two Harbors Investment and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	20	14	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	17	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	65	9	^new
MARKET PULSE
MARKET PULSE	n/a	18	34	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	7	15	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Two Harbors Investment.
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