FS KKR Capital Corp (FSK)
NYSE:FSK
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FS KKR Capital
(NYSE:FSK)
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Rating:56Neutral
Price Target:
$10.50
â–¼(-2.14% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
FS KKR Capital (FSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.90B
Dividend Yield18.52%
Average Volume (3M)4.47M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-13.67%
EPS Growth-48.49%
CountryUS
Employees1,383
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.52
Shares Outstanding280,066,440
10 Day Avg. Volume3,334,860
30 Day Avg. Volume4,470,765
Financial Highlights & Ratios
PEG Ratio-3.84
Price to Book (P/B)0.71
Price to Sales (P/S)3.54
P/FCF Ratio7.01
Enterprise Value/Market Cap3.60
Enterprise Value/Revenue14.21
Enterprise Value/Gross Profit34.18
Enterprise Value/Ebitda45.08
Forecast
1Y Price Target
$11.90Price Target Upside10.90% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.71
Revenue Forecast (FY)$1.24B
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...
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 portfoli...
FS KKR Capital Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
Mixed/Neutral. The company reported several concrete achievements — strong 2025 originations ($5.6B), disciplined capital actions (new notes, CLO, facility amendments), ample liquidity (~$3.8B), and continued focus on first‑lien and senior secured lending — but also disclosed notable portfolio stress: a 5% decline in NAV, concentrated quarterly markdowns (PRG, Medallia, Peraton, Cubic), a meaningful increase in nonaccruals (to 5.5% cost basis), lower interest income and a trimmed near‑term dividend outlook (~9% of NAV). Management emphasized active workout plans, portfolio monitoring and multi‑year remediation steps, leaving the call balanced between operational strengths and near‑term credit challenges.Positive Updates
Strong 2025 Originations and Portfolio Activity
Originated $5.6 billion of primarily first‑lien and asset‑based finance investments in 2025; Q4 originations of ~$1.1 billion; net portfolio growth of $292 million in Q4 after $806 million of sales and repayments. New investments in Q4 were ~65% first lien and ~15% asset‑based finance.
Negative Updates
NAV Decline and Quarterly Shortfall vs. Prior Expectations
Net asset value per share declined 5% quarter‑over‑quarter to $20.89 from $21.99. Q4 GAAP net investment income (NII) was $0.48 per share (adjusted NII $0.52) versus public guidance of $0.51 and $0.56, respectively; the NAV decline included a $0.87 per share valuation decline and a $0.70 per share distribution impact.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong 2025 Originations and Portfolio Activity
Originated $5.6 billion of primarily first‑lien and asset‑based finance investments in 2025; Q4 originations of ~$1.1 billion; net portfolio growth of $292 million in Q4 after $806 million of sales and repayments. New investments in Q4 were ~65% first lien and ~15% asset‑based finance.
Read all positive updates
Company Guidance
FSK guided Q1 2026 GAAP net investment income of approximately $0.45 per share and adjusted NII of about $0.44 per share, driven by expected recurring interest income of ~$226 million, recurring joint-venture dividend of ~$60 million and fee/other dividend income of ~$29 million, against projected management fees of ~$48 million, incentive fees of ~$26 million, interest expense of ~$104 million and other G&A of ~$9 million; the Board declared a Q1 distribution of $0.48 per share (base $0.45 + supplemental $0.03), representing a 100% payout of GAAP NII and a 9.2% yield on the Q4 ending NAV of $20.89. Quarterly context: Q4 NII was $0.48 (adjusted NII $0.52), portfolio fair value was ~$13 billion across 232 companies, weighted average yield on accruing debt was 10% (down 50 bps), weighted average cost of debt 5.1%, gross/net debt-to-equity 130%/122% (net leverage within 1.0–1.25x target), available liquidity ~$3.8 billion, nonaccruals 5.5% of cost (3.4% of fair value), and the portfolio was ~58% first‑lien and ~62% senior secured (68%/72% look‑through including the JV).FS KKR Capital Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
66
Positive
| 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
Neutral
10.73
Price Trends
11.02
Negative
12.56
Negative
14.11
Negative
Market Momentum
-0.12
Negative
54.30
Neutral
50.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSK, the sentiment is Neutral. The current price of 10.73 is above the 20-day moving average (MA) of 10.23, below the 50-day MA of 11.02, and below the 200-day MA of 14.11, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $823.83M | 9.13 | 8.72% | 13.18% | -26.08% | -27.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.02B | 8.99 | 8.03% | 17.34% | -16.58% | 65.24% | |
65 Neutral | $4.86B | 10.94 | 16.94% | 7.17% | 11.60% | 9.38% | |
63 Neutral | $3.35B | 13.71 | 8.30% | 11.70% | 24.12% | 1.09% | |
62 Neutral | $2.81B | 9.36 | 15.88% | 10.00% | -15.32% | -12.29% | |
56 Neutral | $2.90B | -9.10 | 0.18% | 18.52% | -13.67% | -48.49% |
* Financial Sector Average
FSK
FS KKR Capital
10.73
-5.42
-33.56%
GBDC
Golub Capital Bdc
13.11
0.75
6.09%
HTGC
Hercules Capital, Inc.
15.28
-0.17
-1.07%
MAIN
Main Street Capital
56.39
7.31
14.88%
GSBD
Goldman Sachs BDC
9.46
0.75
8.66%
BCSF
Bain Capital Specialty Finance
13.01
0.28
2.21%
FS KKR Capital Corporate Events
Business Operations and Strategy
FS KKR Capital Posts New Static Investor Presentations
Neutral
Mar 5, 2026
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. T...
Business Operations and StrategyDividendsFinancial Disclosures
FS KKR Capital Reports Weaker Q4 Results, Maintains Dividend
Negative
Feb 25, 2026
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, 202...
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.