FS KKR Capital (FSK) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: 18.52%
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -13.67%
• EPS Growth: -48.49%
• Country: US
• Employees: 1,383
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 280,066,440
• 10 Day Avg. Volume: 5,133,993
• 30 Day Avg. Volume: 4,630,528
• PEG Ratio: -3.84
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 3.54
• P/FCF Ratio: 7.01
• Enterprise Value/Market Cap: 3.64
• Enterprise Value/Revenue: 13.97
• Enterprise Value/Gross Profit: 33.61
• Enterprise Value/Ebitda: 44.33
• 1Y Price Target: $12.08
• Price Target Upside: 17.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.75
• Revenue Forecast (FY): $1.23B

• Rating: 56 Neutral
• Price Target: $10.50 ▲(2.34% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is anchored by middling financial performance due to leverage, volatility, and recent datapoint inconsistencies, alongside weak technicals (below key moving averages with negative MACD). Valuation is supportive (moderate P/E and very high yield), but the latest earnings call was mixed as improving capital execution and guidance are offset by NAV pressure, rising nonaccruals, and reduced dividend outlook.

Positive Factors

Liquidity & capital markets access

Material, diversified liquidity and demonstrated capital-markets execution reduce refinancing and funding risk for a leveraged BDC. Access to revolver capacity, unsecured notes and CLO financing supports ongoing originations, opportunistic purchases and workout funding over coming quarters, cushioning NAV and payout flexibility.

Senior‑secured, first‑lien portfolio mix

A majority-first‑lien, senior‑secured portfolio structurally lowers loss severity in default scenarios and supports more stable collateral recoveries. This positioning tends to preserve interest income and mitigate NAV downside versus unsecured exposures through multi-quarter credit cycles.

Robust origination platform & JV scale

Consistent, sizable origination capability and a scaling JV provide recurring deal flow and fee/opportunity pipelines. Persistent originations across industries and the KKR/FS platform support portfolio reinvestment, diversification across 232 companies and steady interest income over the next several quarters.

Negative Factors

High leverage

Sustained leverage above equity magnifies NAV and earnings volatility during credit stress and limits balance-sheet flexibility. Elevated debt levels increase interest expense and refinancing exposure, constraining the BDC's ability to absorb defaults and sustain distributions if credit performance weakens over the next several quarters.

Elevated nonaccruals and concentrated losses

A rising nonaccrual rate and multi-name concentration signal deteriorating credit quality that can depress future interest income and drive realized losses. Concentrated marks can take multiple quarters to resolve, increasing NAV volatility and pressuring distributable earnings while restructurings or recoveries play out.

NAV decline & trimmed dividend outlook

A material QoQ NAV decline reduces the cushion for future losses and prompted management to lower expected dividend payout metrics. A trimmed payout policy reflects constrained distributable earnings and implies more cautious capital allocation, which can persist until credit metrics and NII visibility recover.

FS KKR Capital Business Overview & Revenue Model

Company Description

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S. companies. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. It also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans, or mezzanine loans. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seek to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor. Additionally, on an opportunistic basis, the fund may also invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations, or companies with speculative business plans. It seeks to invest in small and middle-market companies based in United States. The fund seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It focus on providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million to $100 million at the time of investment. It seeks to exit from securities by selling them in a privately negotiated over- the- counter market. For any investments that are not able to be sold within the secondary market, the firm seeks to exit such investments through repayment, an initial public offering of equity securities, merger, sale or recapitalization.

How the Company Makes Money

FSK makes money primarily from investment income generated by its portfolio of loans and other credit investments. The core revenue stream is interest income earned on debt investments (typically floating-rate or fixed-rate loans) made to portfolio companies; these loans often carry contractual coupon interest and may also include upfront fees such as original issue discounts (OID), structuring/arrangement fees, consent or amendment fees, and prepayment-related fees, which are recognized as income over time or when earned depending on the fee type and accounting treatment. A secondary source of earnings is realized and unrealized gains (or losses) on investments, which can occur when a portfolio company is sold, refinanced, recapitalized, or when the fair value of an investment changes; equity and equity-linked positions, when held, can contribute dividends and capital gains but are generally not the primary driver relative to interest income. As a BDC, FSK also uses leverage (borrowing through credit facilities and/or issuing debt securities) to increase the size of its earning asset base; the spread between yields on its investments and its cost of funding (net of operating expenses) contributes materially to net investment income. The company is externally managed and pays management and incentive fees to its investment adviser/manager, which reduces net income available to shareholders but does not constitute a revenue source for FSK itself. Key factors influencing earnings include portfolio credit performance (defaults, restructurings, non-accruals), changes in benchmark interest rates (which affect floating-rate asset yields and variable-rate funding costs), fee income tied to origination and repayments, and the ability to source and underwrite new investments—supported by the manager’s platform and sourcing capabilities, including its relationship with KKR.

FS KKR Capital Financial Statement Overview

Summary

Solid profitability and cash generation in 2021–2024 (notably strong 2024 free cash flow), but meaningful leverage and volatility. Major data consistency issues in the latest annual datapoint (2025 showing zero revenue/net income and zero debt despite positive cash flow) reduce confidence in recent trend quality.

Income Statement

Profitability was strong in 2021–2024 with consistently high margins and solid earnings (2024 net income of ~$585M on ~$1.11B revenue). However, revenue has been volatile (sharp swing from negative revenue in 2020 to a peak in 2021, then modest declines in 2024), and the latest 2025 annual datapoint shows revenue and net income at 0 with a -100% revenue growth rate, which creates major confidence and comparability issues despite positive EBIT shown.

Balance Sheet

The balance sheet is sizable (2024 assets of ~$14.2B) with meaningful equity ($6.6B) and steady, positive returns on equity in 2021–2024. Leverage is notable and persistent, with debt running above equity (debt-to-equity ~1.11–1.24 across 2021–2024), which can amplify results in both good and weak credit cycles. The 2025 annual datapoint shows zero debt, which is a large discontinuity versus prior years and raises data consistency risk.

Cash Flow

Cash generation appears healthy, with operating cash flow and free cash flow positive each year shown and particularly strong in 2024 (~$1.90B). Cash flow generally kept pace with reported earnings (free cash flow to net income shown at 1.0). The main weakness is volatility: operating cash flow swung materially year to year (e.g., ~$385M in 2021 vs. ~$1.90B in 2024), and 2025 free cash flow declined ~24% versus the prior year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	1.11B	1.23B	463.00M	1.76B
Gross Profit	815.00M	664.00M	779.00M	112.00M	1.54B
EBITDA	665.00M	608.00M	721.00M	116.00M	1.53B
Net Income	11.00M	585.00M	696.00M	92.00M	1.51B
Balance Sheet
Total Assets	13.73B	14.22B	15.47B	16.12B	17.23B
Cash, Cash Equivalents and Short-Term Investments	181.00M	296.00M	231.00M	251.00M	377.00M
Total Debt	7.63B	7.35B	8.19B	8.69B	9.14B
Total Liabilities	7.88B	7.60B	8.62B	9.11B	9.50B
Stockholders Equity	5.85B	6.62B	6.85B	7.01B	7.73B
Cash Flow
Free Cash Flow	592.00M	1.90B	631.00M	1.01B	385.00M
Operating Cash Flow	592.00M	1.90B	631.00M	1.01B	385.00M
Investing Cash Flow	0.00	0.00	753.00M	99.00M	-1.02B
Financing Cash Flow	-679.00M	-1.84B	-1.40B	-1.23B	825.00M

FS KKR Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSK, the sentiment is Negative. The current price of 10.26 is below the 20-day moving average (MA) of 10.73, below the 50-day MA of 12.25, and below the 200-day MA of 14.80, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 33.26 is Neutral, neither overbought nor oversold. The STOCH value of -6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSK.

FS KKR Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCSF	72 Outperform	$795.94M	8.11	0.04%	13.18%	-26.08%	-27.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSBD	66 Neutral	$1.05B	8.99	8.03%	17.34%	-16.58%	65.24%
MAIN	65 Neutral	$4.97B	10.94	16.94%	7.17%	11.60%	9.38%
GBDC	64 Neutral	$3.29B	13.71	8.30%	11.70%	24.12%	1.09%
HTGC	62 Neutral	$2.66B	10.01	15.88%	10.00%	-15.32%	-12.29%
FSK	56 Neutral	$2.83B	-9.10	0.18%	18.52%	-13.67%	-48.49%

FS KKR Capital Corporate Events

FS KKR Capital Posts New Static Investor Presentations

FS KKR Capital Corp. announced it will post new investor presentations on its website after the market close on March 5, 2026, making updated information available under the Events & Presentations section for current and prospective stakeholders. The company emphasized that, aside from obligations under federal securities laws, it does not intend to routinely update or revise the materials, signaling that the presentations are meant as static reference documents rather than continuously refreshed guidance.

The most recent analyst rating on (FSK) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.

FS KKR Capital Reports Weaker Q4 Results, Maintains Dividend

FS KKR Capital reported fourth-quarter 2025 results on February 25, 2026, showing net investment income of $0.48 per share, down from $0.57 in the prior quarter, and a decline in net asset value to $20.89 per share from $21.99 at September 30, 2025, driven by $0.89 per share in net realized and unrealized losses. For full-year 2025, net investment income fell to $2.34 per share from $2.90 in 2024, while total net realized and unrealized losses widened to $2.30 per share, reflecting challenges in a few investments that also pushed non-accruals to 3.4% of the portfolio at fair value and contributed to a net debt-to-equity ratio of 122%.

Despite weaker earnings and portfolio marks, the board on February 19, 2026 declared a first-quarter 2026 cash distribution of $0.48 per share, following total 2025 cash distributions of $2.80 per share, signaling an ongoing commitment to shareholder payouts. As of December 31, 2025, FSK maintained $208 million in cash and $3.3 billion of available financing capacity, with 62% of its $7.6 billion of debt unsecured, while management emphasized efforts in 2026 to stabilize underperforming holdings and continue shifting toward high-quality, first-lien senior secured originations to diversify and strengthen the portfolio.

The most recent analyst rating on (FSK) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.

FS KKR Capital Completes $389 Million Middle-Market Securitization

On December 18, 2025, FS KKR Capital’s wholly owned special purpose subsidiary, KKR – FSK CLO 3 LLC, completed a $389.5 million term debt securitization backed by a diversified portfolio of primarily middle market loans and participation interests, with some exposure to broadly syndicated loans and other permitted assets. The transaction, executed via private placement across multiple tranches of senior secured and deferrable floating rate notes and loans maturing in 2038, provided the company with cash proceeds in exchange for transferring an initial portfolio of collateral obligations to the issuer, with any excess fair value treated as a capital contribution. FS KKR Capital retained 100% of the issuer’s membership interests, will serve as portfolio manager for the collateral, and has irrevocably waived any base management fee or subordinated interest under the portfolio management agreement, aligning its economics primarily with the performance of the retained equity in the securitization and reinforcing its position in the middle market credit securitization space.

The most recent analyst rating on (FSK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.