Millrose Properties, Inc.
Millrose Properties, Inc. Fundamental Analysis
Millrose Properties, Inc. (MRP) shows moderate financial fundamentals with a PE ratio of 9.65, profit margin of 64.96%, and ROE of 7.90%. The company generates $0.7B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MRP's fundamental strength across five key dimensions:
Efficiency Score
WeakMRP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRP trades at attractive valuation levels.
Growth Score
WeakMRP faces weak or negative growth trends.
Financial Health Score
ExcellentMRP maintains a strong and stable balance sheet.
Profitability Score
ModerateMRP maintains healthy but balanced margins.
Key Financial Metrics
Is MRP Expensive or Cheap?
P/E Ratio
MRP trades at 9.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRP's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Millrose Properties, Inc. at 0.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.90 times EBITDA. This is generally considered low.
How Well Does MRP Make Money?
Net Profit Margin
For every $100 in sales, Millrose Properties, Inc. keeps $64.96 as profit after all expenses.
Operating Margin
Core operations generate 85.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.90 in profit for every $100 of shareholder equity.
ROA
Millrose Properties, Inc. generates $4.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Millrose Properties, Inc. generates strong operating cash flow of $4.13B, reflecting robust business health.
Free Cash Flow
Millrose Properties, Inc. generates strong free cash flow of $4.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $26.80 in free cash annually.
FCF Yield
MRP converts 1.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
28.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MRP Stacks Against Its Sector Peers
| Metric | MRP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.65 | 22.93 | Better (Cheaper) |
| ROE | 7.90% | 673.00% | Weak |
| Net Margin | 64.96% | 1601500.00% | Weak |
| Debt/Equity | 0.42 | -17.11 (disorted) | Distorted |
| Current Ratio | 28.65 | 22.79 | Strong Liquidity |
| ROA | 4.84% | -939.00% (disorted) | Weak |
MRP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Millrose Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
314.15%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
1008.84%
Industry Style: Income, Inflation Hedge, REIT
High Growth