Fs Kkr Capital (FSK)
NYSE:FSK
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FS KKR Capital
(NYSE:FSK)
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Rating:50Neutral
Price Target:
$10.50
â–¼(-7.81% Downside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by sharply weakened TTM profitability (large net loss and revenue decline) and the earnings-call negatives around NAV drawdown and higher nonaccruals. Support comes from still-positive cash generation, a manageable (though leveraged) balance sheet, and corrective shareholder-alignment actions (tender/buyback/fee waiver), while technicals and valuation read as mixed rather than clearly favorable.
Positive Factors
Strong pro forma liquidity
Material pro forma liquidity (~$2.3B after a revolver amendment) provides durable flexibility to fund workouts, reduce leverage, and execute the approved buyback/tender without forcing distressed asset sales. That buffer supports longer‑term credit remediation and orderly balance‑sheet repair.
Negative Factors
Material NAV decline and rising nonaccruals
A near‑10% NAV drop and rising nonaccruals reflect tangible credit deterioration in specific portfolio names. These structural asset‑quality hits can persist, pressure distributable earnings, and require prolonged realization or recoveries, increasing the risk of future mark‑to‑market volatility and impairment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong pro forma liquidity
Material pro forma liquidity (~$2.3B after a revolver amendment) provides durable flexibility to fund workouts, reduce leverage, and execute the approved buyback/tender without forcing distressed asset sales. That buffer supports longer‑term credit remediation and orderly balance‑sheet repair.
Read all positive factors
FS KKR Capital (FSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.02B
Dividend Yield18.52%
Average Volume (3M)3.52M
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-38.13%
EPS Growth-203.38%
CountryUS
Employees1,383
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-1.97
Shares Outstanding280,066,440
10 Day Avg. Volume3,059,478
30 Day Avg. Volume3,521,589
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 Cap3.36
Enterprise Value/Revenue16.98
Enterprise Value/Gross Profit50.61
Enterprise Value/Ebitda-45.41
Forecast
1Y Price Target
$10.63Price Target Upside-6.72% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.66
Revenue Forecast (FY)$1.17B
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 the investment income it earns on its portfolio of private credit investments. The key revenue streams are: (1) Interest income: The largest driver is interest collected on loans (typically senior secured and often f...
FS KKR Capital Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call reflects a balanced but cautious outlook: results were negative this quarter with a near-10% NAV decline, rising nonaccruals and lower investment income and yields. Management and KKR announced an extensive, credible set of remedial actions — a $150M tender, $150M convertible preferred injection, $300M buyback authorization and a fee waiver — plus meaningful liquidity (pro forma $2.3B) and a plan to reduce leverage and new originations. While the strategic package materially addresses liquidity, shareholder alignment and NII support, the substantial portfolio-specific impairments and NAV volatility are significant near-term negatives. Overall, positive corrective actions are balanced by material, tangible underwriting and valuation issues in the portfolio.Positive Updates
Comprehensive Strategic Support Package Announced
KKR and FSK announced four coordinated actions: a $150 million fixed-price tender at $11 per share to provide liquidity; a $150 million investment by KKR via a cumulative convertible preferred security with an initial conversion price equal to 3/31/26 NAV ($18.83) and a 5% cash / 7% PIK dividend option; a $300 million share repurchase authorization (to be implemented after the tender); and a temporary 50% waiver of the subordinated income incentive fee by the adviser for four quarters to support net investment income and distributions.
Negative Updates
Material NAV Decline
Net asset value per share declined 9.9% in the quarter to $18.83 (from $20.89 at 4Q25). The NAV decline was attributed to company-specific credit events, new nonaccruals and mark-to-market moves.
Read all updates
Q1-2026 Updates
Positive
Negative
Comprehensive Strategic Support Package Announced
KKR and FSK announced four coordinated actions: a $150 million fixed-price tender at $11 per share to provide liquidity; a $150 million investment by KKR via a cumulative convertible preferred security with an initial conversion price equal to 3/31/26 NAV ($18.83) and a 5% cash / 7% PIK dividend option; a $300 million share repurchase authorization (to be implemented after the tender); and a temporary 50% waiver of the subordinated income incentive fee by the adviser for four quarters to support net investment income and distributions.
Read all positive updates
Company Guidance
Management’s guidance paired several near-term stabilizing actions with financial targets and balance‑sheet metrics: NAV fell 9.9% q/q to $18.83 (from $20.89) after a $2.00/share portfolio markdown, GAAP net investment income was $0.42/share (and the Board declared a Q2 distribution of $0.42/share), and management expects annualized net investment income of roughly 8%–9% of NAV going forward; KKR will commence a $150M fixed‑price tender at $11/share and invest $150M in a cumulative convertible preferred (initial conversion price $18.83, 5% cash or 7% PIK dividend, holder‑convertible after 6 months, redeemable by holder after 6 years), FSK authorized a $300M buyback, the adviser will waive 50% of the subordinated income incentive fee for four quarters, and management expects Q2 net repayments in excess of $500M; pro forma liquidity after amending the revolver (now $4.1B; spread +12.5 bps) is $2.3B, the portfolio had fair value $12.3B across 236 companies (top 10 ≈20%), ~60% first‑lien (≈69% look‑through to the JV), ~64% senior secured (≈73% look‑through), JV ≈14%, weighted average yield on accruing debt 9.7% (‑30 bps q/q), weighted average cost of debt 5.3%, gross/net debt‑to‑equity 138%/131%, and nonaccruals of 8.1% (cost basis) and 4.2% (fair value).FS KKR Capital Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 599.00M | 1.17B | 1.11B | 1.23B | 463.00M | 1.76B |
| Gross Profit | 201.00M | 815.00M | 664.00M | 779.00M | 112.00M | 1.54B |
| EBITDA | -224.00M | 665.00M | 608.00M | 721.00M | 116.00M | 1.53B |
| Net Income | -550.00M | 11.00M | 585.00M | 696.00M | 92.00M | 1.51B |
Balance Sheet | ||||||
| Total Assets | 12.82B | 13.73B | 14.22B | 15.47B | 16.12B | 17.23B |
| Cash, Cash Equivalents and Short-Term Investments | 124.00M | 181.00M | 296.00M | 231.00M | 251.00M | 377.00M |
| Total Debt | 7.27B | 7.63B | 7.35B | 8.19B | 8.69B | 9.14B |
| Total Liabilities | 7.55B | 7.88B | 7.60B | 8.62B | 9.11B | 9.50B |
| Stockholders Equity | 5.27B | 5.85B | 6.62B | 6.85B | 7.01B | 7.73B |
Cash Flow | ||||||
| Free Cash Flow | 409.00M | 592.00M | 1.90B | 631.00M | 1.01B | 385.00M |
| Operating Cash Flow | 409.00M | 592.00M | 1.90B | 631.00M | 1.01B | 385.00M |
| Investing Cash Flow | 846.00M | 0.00 | 0.00 | 753.00M | 99.00M | -1.02B |
| Financing Cash Flow | -1.59B | -679.00M | -1.84B | -1.40B | -1.23B | 825.00M |
FS KKR Capital Technical Analysis
Positive
11.39
Price Trends
10.70
Positive
11.48
Negative
12.93
Negative
Market Momentum
>-0.01
Positive
50.35
Neutral
54.17
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 11.39 is above the 20-day moving average (MA) of 10.96, above the 50-day MA of 10.70, and below the 200-day MA of 12.93, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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 1 risk factors in its most recent earnings report. FS KKR Capital reported the most risks in the "Legal & Regulatory" 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.77B | 10.89 | 14.32% | 7.17% | 16.23% | -19.30% | |
69 Neutral | $2.89B | 8.51 | 15.11% | 10.00% | 14.32% | 36.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $864.05M | 11.73 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $3.41B | 16.87 | 5.24% | 11.70% | 6.69% | -31.63% | |
52 Neutral | $1.00B | 13.61 | 5.14% | 17.34% | 14.92% | 48.21% | |
50 Neutral | $3.02B | -5.54 | -9.39% | 18.52% | -38.13% | -203.38% |
* Financial Sector Average
FSK
FS KKR Capital
10.87
-7.04
-39.29%
GBDC
Golub Capital Bdc
13.16
-0.49
-3.59%
HTGC
Hercules Capital, Inc.
15.45
-0.30
-1.90%
MAIN
Main Street Capital
51.21
-1.72
-3.26%
GSBD
Goldman Sachs BDC
8.96
-0.62
-6.49%
BCSF
Bain Capital Specialty Finance
13.31
-0.40
-2.89%
FS KKR Capital Corporate Events
Business Operations and StrategyPrivate Placements and Financing
FS KKR Capital Issues Convertible Preferred Stock in Placement
Positive
May 12, 2026
On May 10, 2026, FS KKR Capital Corp. entered into a purchase agreement with KKR Alternative Assets L.P. under which the purchaser agreed to buy $150 million of newly issued cumulative convertible perpetual preferred stock. The preferred shares, w...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
FS KKR Capital Announces Earnings Amid Balance-Sheet Actions
Negative
May 11, 2026
On May 11, 2026, FS KKR Capital reported first-quarter 2026 results showing pressure on earnings and asset quality, with net investment income falling to $0.42 per share from $0.48 in the prior quarter and net asset value dropping to $18.83 from $...
Business Operations and StrategyFinancial Disclosures
FS KKR Capital Reschedules First-Quarter 2026 Earnings Call
Neutral
Apr 28, 2026
FS KKR Capital Corp. is a publicly traded business development company that provides customized credit solutions to private middle market U.S. companies. The firm primarily invests in senior secured debt and, to a lesser extent, subordinated debt,...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
FS KKR Capital Releases Updated Investor Presentation Materials
Neutral
Apr 10, 2026
FS KKR Capital Corp. announced that it would make updated investor presentations available on its website after the market close on April 10, 2026, offering stakeholders refreshed information on the company’s activities and performance. The ...
Business Operations and Strategy
FS KKR Capital Updates Investor Presentations for Shareholders
Neutral
Mar 24, 2026
FS KKR Capital Corp. announced it will post updated investor presentations on its website before the market opens on March 24, 2026, making new materials accessible via the Events Presentations section in its investor relations area. The move und...
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.