| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | 8.3x | 17.3x | Top tier | |
Growth | 90 | — | 7.1% | Top tier | |
Quality | 87 | 8.3% | 4.5% | Top tier | |
Safety | 67 | 3.7x | 2.6x | Top tier | |
Capital Return | 38 | 12.25% | 0.06% | Bottom tier | |
Momentum | 26 | -16.2% | -1.6% | Bottom tier | |
Sentiment | 80 | 3 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Millrose Properties, listed on the NYSE under the ticker MRP, operates as a permanent capital platform for residential real estate, owning land and financing its development for homebuilders. It generates recurring income from option fees that give those companies the right to purchase the land later, alongside development loan income. In quarter 2 of fiscal year 2026 (ended 2026-06-30), revenue totaled 196.9 million dollars, comprising recurring option fees of 195.4 million dollars and development loan income of 1.5 million dollars. Its business therefore depends on the amount of invested capital, the continuation of homebuilder contracts, and how quickly recovered funds are redeployed.
Revenue increased 32.1% in quarter 2 of fiscal year 2026 (ended 2026-06-30) compared with the same quarter of fiscal year 2025, while net income reached 125.9 million dollars and diluted earnings per share were 0.76 dollars, with an operating margin of 85.2%. Invested capital totaled 8.8 billion dollars at quarter-end, allocated 68% to the main Lennar agreement and 32% to other agreements; this is a breakdown of invested capital, not revenue. Other agreements generated a weighted yield of 10.6% during the quarter.
The portfolio comprised approximately 144 thousand homesites across 877 communities in 30 states at the end of quarter 2 of fiscal year 2026 (ended 2026-06-30), and the platform had recorded no option contract terminations from its inception through that date. During the quarter, the company recovered approximately 1 billion dollars from homebuilders' land purchases and development loan repayments, and redeployed 1.1 billion dollars into new opportunities. Through a relationship with JPI, a subsidiary of Sumitomo Forestry, it expanded into financing land for multifamily residential projects; however, management described this step on the 2026-08-04 call as opportunistic, rather than a comprehensive strategic shift.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-27
Revenue reported in the expected earnings results compared with 196.9 million dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30)
Operating margin in the expected earnings results compared with 85.2% in quarter 2 of fiscal year 2026 (ended 2026-06-30)
The no-growth value is 28 dollars, measuring the value of current after-tax operating profit if it remains constant forever at a discount rate of 8.7%. The industry-multiple value is 26 dollars, within a range of 14 dollars to 30 dollars, based on a median sales multiple of 5.6 across 21 companies, meaning it values the business against a peer benchmark. The central values are close, but the industry-multiple range is wider because it reflects differences in peer valuations, while the no-growth value is tied to constant operating profit. Analyst consensus is Buy, with analyst targets inherently tending toward optimism and the cash flow model tending toward conservatism. The EL7 valuation pillar ranks 2 out of 22 within the industry with a score of 95 out of 100 based on data for the period ended 2026-06-30.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
The business presented in the results for quarter 2 of fiscal year 2026 (ended 2026-06-30) is primarily based on owning land and financing its development for homebuilders in exchange for recurring option fees. Option fees totaled 195.4 million dollars and development loan income totaled 1.5 million dollars out of total revenue of 196.9 million dollars during the quarter. On the 2026-08-04 call, management described the JPI relationship as financing land and horizontal development work for multifamily projects, rather than a comprehensive strategic shift. The 2026-10-19 news report raised concerns about a move toward purchasing completed homes to rent them out, an activity whose economics should be assessed independently of the land model.
The main Lennar agreement represented 68% of invested capital in quarter 2 of fiscal year 2026 (ended 2026-06-30), compared with 32% for other agreements. The weighted yield on other agreements reached 10.6% during the quarter, making their expansion an important path to diversifying the income base. The company added a relationship with JPI, a subsidiary of Sumitomo Forestry, as part of its expansion into multifamily residential land. Nevertheless, the governance concerns raised by the
Automated analysis for informational purposes only — not investment advice.
The share of agreements outside Lennar in the expected earnings results compared with 32% of invested capital at the end of quarter 2 of fiscal year 2026 (ended 2026-06-30)
On 2026-09-23, the board of directors declared a quarterly cash dividend of 0.79 dollars per share for each of classes A and B. The announcement set 2026-10-15 as the payment date and 2026-10-05 as the record date for eligible shareholders. In quarter 2 of fiscal year 2026 (ended 2026-06-30), diluted earnings per share were 0.76 dollars, but this figure and the dividend announced in September relate to different periods, so placing them side by side is insufficient to judge dividend coverage. The ability of recurring option fees to support earnings remains the basis for monitoring payment sustainability.
According to EL7 data, total debt stood at approximately 2.5 billion dollars at the end of quarter 2 of fiscal year 2026 (ended 2026-06-30), compared with cash and short-term investments of 34.2 million dollars. This comparison excludes long-term marketable securities, so it does not by itself establish an overall liquidity shortfall. Management announced available financing of 1.4 billion dollars at quarter-end, while a 2026-09-23 news report stated that 1.0 billion dollars in notes were priced on 2026-09-22. The central issue is therefore the cost, terms, and use of financing, alongside the portfolio's ability to regenerate cash.
The earnings announcement expected on 2026-10-27 will test whether option fee growth continues after revenue reached 196.9 million dollars in quarter 2 of fiscal year 2026 (ended 2026-06-30). The operating margin of 85.2% in that quarter provides a benchmark for monitoring expansion efficiency. The share of agreements outside Lennar also warrants monitoring after reaching 32% of invested capital in the same quarter. Any disclosure of option contract terminations would change the assessment of portfolio resilience, because management confirmed on the 2026-08-04 call that no terminations had been recorded from the platform's inception through the end of that quarter.