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FS KKR Capital Corp (FSK)
NYSE:FSK
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FS KKR Capital
(NYSE:FSK)
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Rating:58Neutral
Price Target:―
FS KKR Capital's stock score reflects a cautious outlook. The primary concerns are the zero revenue reported, which signals significant operational challenges, and the mixed results from the earnings call. The strong cash flow and improved balance sheet provide some stability, and the attractive valuation offers potential for income-focused investors. However, technical indicators suggest caution as the stock may face downward pressure.
Positive Factors
Strong Cash Flow Generation
FSK's ability to generate strong cash flow enhances its liquidity position, providing financial stability and flexibility for future investments.
Reduction in Non-Accrual Investments
Reducing non-accrual investments improves credit quality, potentially leading to better portfolio performance and lower risk of defaults.
Significant Capital Deployment
Significant capital deployment indicates active portfolio management and potential for future income growth through new investments.
Negative Factors
Zero Revenue Reported
Zero revenue indicates severe operational challenges that could impact long-term profitability and business sustainability.
Decrease in Total Investment Income
A decrease in investment income may affect FSK's ability to maintain its distribution levels and could signal weakening portfolio performance.
Leadership Change
Leadership changes can create uncertainty in strategic direction and may impact operational continuity, affecting long-term business performance.
FS KKR Capital (FSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.30B
Dividend Yield17.89%
Average Volume (3M)2.84M
Price to Earnings (P/E)15.8
Beta (1Y)0.41
Revenue Growth-13.67%
EPS Growth-48.49%
CountryUS
Employees1,383
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.57
Shares Outstanding280,066,440
10 Day Avg. Volume2,672,580
30 Day Avg. Volume2,837,570
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)0.92
Price to Sales (P/S)4.85
P/FCF Ratio3.20
Enterprise Value/Market Cap2.64
Enterprise Value/Revenue14.26
Enterprise Value/Gross Profit31.10
Enterprise Value/Ebitda10.55
Forecast
1Y Price Target
$17.19Price Target Upside9.84% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.36
Revenue Forecast (FY)$1.53B
FS KKR Capital Business Overview & Revenue Model
Company DescriptionFS KKR Capital Corp. (FSK) is a leading business development company (BDC) that provides customized credit solutions to private middle-market companies in the United States. The company operates across various sectors, focusing on industries such as healthcare, manufacturing, and energy. FSK primarily invests in senior secured debt, subordinated debt, and equity-related securities, offering flexible financing solutions to its clients.
How the Company Makes MoneyFS KKR Capital makes money primarily through interest income and capital gains from its investment portfolio, which consists of debt and equity securities. The company earns interest income by providing loans to middle-market companies at various interest rates. These loans are typically structured as senior secured debt, offering FSK a higher claim on the borrower's assets in case of default. Additionally, FSK generates revenue from capital gains realized on the sale of equity investments. The company may also earn fee income through structuring fees, commitment fees, and other transaction-related fees associated with the origination and management of its investment portfolio. FSK benefits from its strategic partnership with KKR, a leading global investment firm, which provides access to extensive industry expertise, deal flow, and operational support.
FS KKR Capital Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in net investment income, portfolio performance, and investment activity. However, challenges such as a decline in investment income, high nonaccrual rates, and macroeconomic concerns were also highlighted. The company remains optimistic about its dividend strategy and its ability to navigate current economic conditions.Q3-2025 Updates
Positive Updates
Net Investment Income and Distribution
FS KKR Capital Corp. (FSK) generated net investment income of $0.57 per share, in line with expectations, and announced a fourth quarter distribution totaling $0.70 per share, consisting of a base distribution of $0.64 and a supplemental distribution of $0.06.
Strong Portfolio Performance
The net asset value increased to $21.99 from $21.93 at the end of the second quarter. Additionally, nonaccruals decreased to 5% of the portfolio on a cost basis and 2.9% on a fair value basis, with further improvements expected after restructuring efforts.
Positive Investment Activity
FSK originated approximately $1.1 billion of new investments during the quarter, with a focus on U.S.-based direct lending. The pipeline of deals evaluated increased by approximately 30% year-over-year.
Successful Exits
FSK successfully exited investments in Callodine Commercial Finance and Weber, achieving IRRs of 13.3% and 16.8%, respectively.
Negative Updates
Decline in Investment Income
Total investment income decreased by $25 million compared to the second quarter, with interest income declining due to lower base rates and the repayment of higher-yielding investments.
High Nonaccrual Rates
As of the end of the third quarter, nonaccruals represented 5% of the portfolio on a cost basis and 2.9% on a fair value basis, although restructuring efforts are expected to reduce these figures.
Economic and Market Concerns
There are ongoing concerns about trade tensions, tariff impacts, and the potential effects of government shutdowns and defaults in the broader marketplace.
Company Guidance
During FS KKR Capital Corp.'s Third Quarter 2025 Earnings Conference Call, guidance was provided regarding future dividend strategies and financial performance expectations. The company announced a forward dividend strategy for 2026, forecasting a total distribution equating to an annualized yield on net asset value of approximately 10%, with a base distribution of around $0.45 per share supplemented by quarterly net investment income. For the fourth quarter of 2025, FS KKR expects GAAP net investment income of approximately $0.51 per share and adjusted net investment income of approximately $0.56 per share. The company reported third-quarter net investment income of $0.57 per share, slightly below public guidance, and an increase in net asset value to $21.99 from $21.93 in the previous quarter. Additionally, they highlighted a $0.70 per share fourth-quarter distribution. Despite challenges such as declining interest rates, FS KKR remains optimistic about their resilient position within the BDC industry and continues to focus on senior secured investments, maintaining a robust balance sheet and diversified portfolio.FS KKR Capital Financial Statement Overview
Summary
FS KKR Capital exhibits a mixed financial profile. While the balance sheet and cash flow positions are strong, with no debt and robust cash flow generation, the income statement is concerning, showing zero revenue in the latest year. This indicates significant operational challenges that overshadow the company's liquidity and improved equity position.Income Statement
The income statement shows a volatile revenue trajectory with an alarming drop to zero revenue in the most recent year. Gross profit margin cannot be assessed due to zero gross profit and revenue. Previous years showed declining net profit margin and significant fluctuations in EBIT and EBITDA margins, indicating instability in profitability.22
Negative
Balance Sheet
FS KKR Capital's balance sheet reveals a strong equity base with a debt-free position in the latest year, which is beneficial for stability. The equity ratio has improved, reflecting a solid financial structure. However, previous years exhibited substantial debt levels, which could have posed risks if not managed properly.68
Positive
Cash Flow
Cash flow analysis shows robust operating cash flows, particularly in the latest year, indicating strong cash generation capabilities. The free cash flow to net income ratio is favorable, but the operating cash flow to net income ratio is uncalculable due to zero net income in the latest year. Historical free cash flow growth is solid, enhancing the liquidity position.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 798.00M | 1.11B | 1.23B | 463.00M | 1.76B | -203.00M |
| Gross Profit | 366.00M | 664.00M | 779.00M | 112.00M | 1.54B | -361.00M |
| EBITDA | 1.08B | 608.00M | 721.00M | 116.00M | 1.53B | -395.00M |
| Net Income | 272.00M | 585.00M | 696.00M | 92.00M | 1.51B | -405.00M |
Balance Sheet | ||||||
| Total Assets | 13.91B | 14.22B | 15.47B | 16.12B | 17.23B | 7.24B |
| Cash, Cash Equivalents and Short-Term Investments | 119.00M | 296.00M | 231.00M | 251.00M | 377.00M | 191.00M |
| Total Debt | 7.36B | 7.35B | 8.19B | 8.69B | 9.14B | 4.00B |
| Total Liabilities | 7.75B | 7.60B | 8.62B | 9.11B | 9.50B | 4.14B |
| Stockholders Equity | 6.16B | 6.62B | 6.85B | 7.01B | 7.73B | 3.10B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.90B | 1.38B | 1.11B | -639.00M | 675.00M |
| Operating Cash Flow | 1.38B | 1.90B | 1.38B | 1.11B | -639.00M | 675.00M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 99.00M | -1.02B | -35.00M |
| Financing Cash Flow | -1.59B | -1.84B | -1.40B | -1.23B | 825.00M | -590.00M |
FS KKR Capital Technical Analysis
Positive
15.65
Price Trends
15.42
Positive
17.31
Negative
18.40
Negative
Market Momentum
0.01
Negative
59.56
Neutral
62.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSK, the sentiment is Positive. The current price of 15.65 is above the 20-day moving average (MA) of 15.14, above the 50-day MA of 15.42, and below the 200-day MA of 18.40, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSK.
FS KKR Capital Risk Analysis
FS KKR Capital disclosed 77 risk factors in its most recent earnings report. FS KKR Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FS KKR Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.30B | 9.80 | 19.07% | 7.14% | 11.60% | 9.38% | |
71 Outperform | $3.73B | 9.91 | 9.33% | 11.77% | 32.19% | -13.72% | |
71 Outperform | $1.12B | 8.61 | 8.75% | 16.85% | -16.58% | 65.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $902.97M | 9.68 | 8.18% | 12.85% | -26.08% | -27.65% | |
58 Neutral | $4.30B | 15.83 | 4.24% | 17.89% | -13.67% | -48.49% | |
54 Neutral | $3.24B | 10.39 | 15.21% | 10.40% | -15.32% | -12.29% |
* Financial Sector Average
FSK
FS KKR Capital
15.65
-2.66
-14.53%
GBDC
Golub Capital Bdc
14.02
0.22
1.59%
HTGC
Hercules Capital
17.70
0.46
2.69%
MAIN
Main Street Capital
59.14
10.61
21.86%
GSBD
Goldman Sachs BDC
9.82
-0.93
-8.65%
BCSF
Bain Capital Specialty Finance
14.01
-1.07
-7.10%
FS KKR Capital Corporate Events
DividendsFinancial Disclosures
FS KKR Capital Reports Q4 2024 Financial Results
Neutral
Feb 26, 2025
FS KKR Capital Corp. announced its financial results for the fourth quarter and full year of 2024, highlighting a net investment income of $0.61 per share for the quarter and $2.90 per share for the year. The company declared a first quarter 2025 distribution of $0.70 per share, to be paid in April 2025. Despite a decrease in net asset value and earnings per share compared to previous quarters, the company maintains a strong liquidity position with $4.8 billion available, which is expected to support continued private market activity.
Executive/Board Changes
FS KKR Capital’s Co-President Takes Leave of Absence
Neutral
Feb 7, 2025
On February 3, 2025, FS KKR Capital Corp. announced that Co-President Brian Gerson is taking a leave of absence. His responsibilities will be temporarily assumed by Co-President Daniel Pietrzak, who is also the Chief Investment Officer and a board member, along with other company officers, ensuring continuity in leadership and operations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.