Two Harbors Investment

TWO

REIT - Mortgage · Real Estate

Price

$12.05

+0.01 (+0.08%)

Market Cap

$1.27B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Mixed

Stability

Weak

Valuation

Data not available

Dividends

Good

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Share count rising — dilution

+39.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 74.5M (2021) → 104.2M (2025)

Winston Score History

The full picture

Two Harbors Investment Corp. is a real estate investment trust (REIT) that makes money by investing in mortgage-related assets. Its main investments are agency mortgage-backed securities — essentially bundles of home loans guaranteed by the U.S. government — along with mortgage servicing rights (MSRs), which are contracts that give the company the right to collect payments on home loans. Its customers are effectively the broader financial markets, and it operates entirely within the United States housing finance system.

The company earns income from the interest on its mortgage securities and the fees tied to its servicing rights, using borrowed money to amplify returns — a strategy called leverage. Two Harbors is a mid-sized player in the agency mortgage REIT space, competing with larger peers like Annaly Capital and AGNC Investment. Its pairing of MSRs with agency securities is designed to reduce interest rate risk, but rising or volatile interest rates remain the central challenge for the business, as they directly affect both borrowing costs and the value of its assets.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+78.1% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+117.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

1.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$10.9B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Two Harbors Investment is growing revenue at 78% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

56.4%

Premium pricing power — 56.4% gross margin

Profit after running costs

Operating Margin

32.2%

Excellent — 32.2% operating margin

Return on the money invested

ROCE

5.1%

Weak — 5.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+26.7%

Fast-growing sales (+26.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

13.2%

Converts sales into free cash efficiently (13.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

3.79

Heavy debt load (3.79)

Covers its interest

Interest Cover

1.05x

Dangerous — barely covers interest (1.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

11.22%

Healthy income — 11.22% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

-21.8%

Dividend cut (-21.8% YoY) — warning sign

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