FS KKR Capital (FSK) AI Stock Analysis

• Market Cap: $4.08B
• Dividend Yield: 18.52%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.44
• Revenue Growth: -13.67%
• EPS Growth: -48.49%
• Country: US
• Employees: 1,383
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.57
• Shares Outstanding: 280,066,440
• 10 Day Avg. Volume: 2,472,794
• 30 Day Avg. Volume: 2,662,573
• PEG Ratio: -0.66
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 4.85
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: 2.79
• Enterprise Value/Revenue: 13.85
• Enterprise Value/Gross Profit: 31.44
• Enterprise Value/Ebitda: 36.72
• 1Y Price Target: $17.25
• Price Target Upside: 19.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.09
• Revenue Forecast (FY): $1.37B

• Rating: 60 Neutral
• Price Target: $15.50 ▲(7.12% Upside)

The score is primarily driven by solid cash generation and profitability, offset by leveraged balance sheet risk and volatile earnings. Valuation is supported by a very high dividend yield and a moderate P/E, but technicals are weak (below key moving averages with negative MACD), and the latest earnings call was mixed due to declining investment income and credit/macro concerns despite supportive dividend guidance and improving nonaccruals.

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 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

FS 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	822.00M	1.11B	1.23B	463.00M	1.76B	-203.00M
Gross Profit	362.00M	664.00M	779.00M	112.00M	1.54B	-361.00M
EBITDA	310.00M	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	155.00M	296.00M	231.00M	251.00M	377.00M	191.00M
Total Debt	7.32B	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	784.00M	1.90B	631.00M	1.01B	385.00M	710.00M
Operating Cash Flow	784.00M	1.90B	631.00M	1.01B	385.00M	710.00M
Investing Cash Flow	591.00M	0.00	753.00M	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

• Technical Analysis Sentiment: Negative
• Last Price: 14.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 14.47 is below the 20-day moving average (MA) of 14.76, below the 50-day MA of 14.87, and below the 200-day MA of 16.69, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 is Neutral, 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
HTGC	79 Outperform	$3.38B	10.82	15.21%	10.00%	-15.32%	-12.29%
MAIN	77 Outperform	$5.48B	10.14	19.07%	7.17%	11.60%	9.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCSF	67 Neutral	$907.51M	9.73	8.18%	13.18%	-26.08%	-27.65%
GSBD	65 Neutral	$1.05B	8.03	8.75%	17.34%	-16.58%	65.24%
GBDC	62 Neutral	$3.61B	9.67	9.42%	11.70%	24.12%	1.09%
FSK	60 Neutral	$4.08B	15.00	4.24%	18.52%	-13.67%	-48.49%

FS KKR Capital Corporate Events

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.

FS KKR Capital to Release Investor Presentations

FS KKR Capital Corp. announced that it will make investor presentations available on its website after the market closes on November 13, 2025. This move is part of the company’s efforts to maintain transparency and provide stakeholders with relevant financial information, potentially impacting investor relations and market perception.

The most recent analyst rating on (FSK) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.

FS KKR Capital Announces Q3 2025 Financial Results

FS KKR Capital Corp. announced its financial results for the third quarter of 2025, reporting a net investment income of $0.57 per share and an increase in net asset value to $21.99 per share. The company declared a fourth quarter distribution of $0.70 per share, which will be paid on December 17, 2025. The announcement highlights a strategic focus on maintaining a competitive annualized yield of approximately 10% on its net asset value, aligning with the long-term yield trends of the BDC industry. This distribution strategy is expected to be attractive to investors, reflecting the company’s strong financial performance and stable market positioning.

The most recent analyst rating on (FSK) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.