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Two Harbors Investment has the Profitability Rank of 2. It has had trouble to make a profit.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Two Harbors Investment Profitability Rank Related Terms
FRA:2H2 vs LADR, ORC, CIM: Profitability Rank Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Two Harbors Investment Profitability Rank vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's Profitability Rank falls into.
Two Harbors Investment Profitability Rank Calculation
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Two Harbors Investment has the Profitability Rank of 2. It has had trouble to make a profit.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Two Harbors Investment (FRA:2H2) has a Profitability Rank of 2 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Two Harbors Investment and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, Two Harbors Investment's Profitability Rank has ranged from 2.00 to 7.00.
Is Two Harbors Investment's Profitability Rank too high?
Two Harbors Investment's current Profitability Rank of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, Two Harbors Investment has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's Profitability Rank compare to LADR and ORC?
Two Harbors Investment's Profitability Rank of 2 can be compared against companies in the REITs industry. Historically, Two Harbors Investment's own Profitability Rank has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a REITs company?
A good Profitability Rank depends on the REITs industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Two Harbors Investment and its competitors. Two Harbors Investment's current Profitability Rank is 2, which is 60% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two Harbors Investment stock overvalued right now?
Based on GuruFocus' analysis, Two Harbors Investment (FRA:2H2) is currently considered Possible Value Trap. The stock's GF Value™ is €16.74, compared to a current price of €10.47 — trading 37.5% below its estimated fair value. The current Profitability Rank is 2, which is 60% below median its 10-year median of 5.00. Two Harbors Investment's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current Profitability Rank is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Two Harbors Investment (FRA:2H2) Overvalued in 2026?
Based on GuruFocus' analysis, Two Harbors Investment stock appears to be undervalued.
The current stock price of €10.47 is trading 37.5% below its estimated GF Value™ of €16.74.
GuruFocus considers Two Harbors Investment to be Possible Value Trap.
Key valuation signals for FRA:2H2:
Profitability Rank: 2 (60% below median its 10-year median of 5.00)
GF Value™: €16.74 vs. price of €10.47 (37.5% below fair value)
No single metric tells the full story. See the FRA:2H2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two Harbors Investment Corp is a real estate investment trust focused on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights, and commercial real estate. The majority of its investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. The company derives revenues mainly from its MSR and Agency RMBS portfolio, including servicing fee income, float income, and interest income, as well as mortgage loan origination activities established to support the MSR portfolio. Its investment portfolio is subject to market risks, mainly interest rate, basis, and prepayment risk. The majority of income is generated by available-for-sale securities.
49GF Score
Get the complete analysis for FRA:2H2
Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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