* Note: Prices are in Million (M) USD.
Description:
Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $658 M
Debt : $9,164 M
EBITDA : $346 M
Net Debt (Debt - Cash): $8,506 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate & construction
Industry: Real estate investment trusts
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 18 overlapping fiscal years (max 20).Average Free Cash Flow: $-210 M
Average Revenue: $156 M
Revenue Converted To Free Cash Flow (%): -134.9%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,139 M
Revenue 5 Years Ago (2019-12-31): $428 M
Total Growth over 5 Years: 166.3%
5-Year Revenue CAGR (Historical): 21.6%
Forward 5-Year CAGR (Tapered): 15.1%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $104 M
Share Count 5 Years Ago (2020-12-31): $68 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: 2.8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $10
52-Week Low: $10
Threshold Price (15% Above 52-Week Low): $11
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,051 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $1.09
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.84
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 18 points to above Two Harbors Investments Corp (TWO) stock.
Last 2 Years Avg PE 12.32, Fair Value PE 12, Industry Based PE 10, Growth Based PE 15.15, ROE Based PE 2.77, Risk-Free Anchored PE (25% MoS) 17.61. Based on these 6 values (after removing statistical outliers, n=5), average assigned is 11.51. The fair value of Two Harbors Investments Corp (TWO) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
