Long term Growth Analysis of Two Harbors Investments Corp (NYSE:TWO)

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Quarterly Sales and EPS Roundup:

Two Harbors Investments Corp (TWO) reported sales (ttm) of 638.2 Million, whereas, 7 number of analysts estimated the mean sale of 123.68 million. The analysts estimated sales for the higher end at 138.3 million and lower end at 111.93 million while the year ago reported sale was 101.42 million.

7 number of analysts have estimated the sales of the company for the quarter ending Aug 1, 2017- Aug 7, 2017, analysts estimated mean sale target of 120.01 million while high and low sale targets are estimated at 138.6 million and 106.7 million respectively.

Two Harbors Investments Corp (TWO) reported earning per shares for the quarter ending May 03 AMC at 0.27, whereas, 11 number of analysts estimated the mean EPS at 0.26. The analysts estimated EPS for the higher end at 0.28 and lower end at 0.24 while the year ago reported earnings per share was 0.23.

The company has mean EPS estimate of 0.26 reported by 11 number of analyst for the quarter ending Aug 1, 2017- Aug 7, 2017. The analysts estimated mean EPS at 0.26 while the high and low EPS estimate stand at 0.28 and 0.23 respectively. In contrast to the year ago quarter EPS was at 0.23. EPS long term mean growth rate estimated by 2 analysts is at 6.85%, whereas, the high and low Long term growth rate estimated at 6.9 and 6.8.

Valuation Ratios of Two Harbors Investments Corp (TWO) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Two Harbors Investments Corp (TWO). These ratios are important while doing valuation of the company or the shares of the company.

Two Harbors Investments Corp (TWO) currently has P/E (Price to Earnings) ratio of 6.7 while the company’s industry has 33.38 P/E and the sector P/E is 27.88. Similarly, the company’s last 5 years high P/E ratio is 21.94 and low P/E is 5.66, whereas, the industry’s and sector’s  high P/E for the past year is 1481.89 and 28.86 respectively and low P/E ratio for the last 5 years is 17.23 for the industry and 10.92 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, TWO has Beta of 0.67 while its industry and Sector’s beta remains at 0.37 and 1.55 respectively.

Price to Sale ratio of TWO stands at 5.39 while Price to Book Ratio stands at 1. Its Price to Cash Flow ratio shows the value of 6.71, whereas, the industry and sector ratio of Price to Cash Flow ticked at 22.16 and 15.08 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Two Harbors Investments Corp (TWO) stands at 25.73 while the industry’s and the sector’s growth for next 5 years ticked at 5.67 and 14.43 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at -4.69 and 0.

Two Harbors Investments Corp (TWO) Trading Statistics:

The company surged 0.4% and closed its last trading session at $9.91. The market capitalization of the company is at $3.47 Billion. The stock touched 52-week High of $10.18 on 04/28/17 and 52-week Low of $7.40 on 10/06/16. The stock currently has Weekly Volatility of 1.09% and Monthly Volatility of 1.51%. The Beta for the company stands at 0.67 and its Average True Range (ATR) shows a value of 0.14.

 

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