FS KKR Capital (FSK) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: 18.52%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 13.5
• 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): 0.52
• Shares Outstanding: 280,066,440
• 10 Day Avg. Volume: 2,519,900
• 30 Day Avg. Volume: 2,521,513
• PEG Ratio: 0.00
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.01
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.82
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 25.91
• 1Y Price Target: $13.00
• Price Target Upside: 15.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.09
• Revenue Forecast (FY): $1.37B

• Rating: 56 Neutral
• Price Target: $13.50 ▲(19.57% 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

Originations & pipeline strength

Sizable and repeatable originations ( $5.6B in 2025, Q4 ~$1.1B) focused on first‑lien and ABL demonstrate durable deal flow and underwriting capacity. A steady new investment runway supports recurring interest income, portfolio reinvestment and NII generation over the medium term.

Strong liquidity and diversified funding access

Ample liquidity (~$3.8B) and demonstrated capital markets execution (notes, facility, CLO issuance and revolver amendment) provide structural flexibility to fund originations, manage maturities and weather credit stress. Diverse funding reduces near‑term refinancing risk and supports portfolio stability.

Reliable cash generation / free cash flow

Consistent positive operating and free cash flow (notably strong 2024 FCF) underpins the firm's ability to cover distributions, service debt and absorb losses. Durable cash generation improves resilience across credit cycles and supports gradual portfolio remediation and capital returns.

Negative Factors

Rising nonaccruals and elevated credit stress

Nonaccruals materially above the long‑term BDC average signal deteriorating asset quality. Elevated problem loans increase provisioning risk, reduce cash interest receipts and can depress NII and NAV over the next several quarters as workouts and restructurings play out.

NAV decline and concentrated quarterly marks

A 5% QoQ NAV drop driven by concentrated losses in a few names implies idiosyncratic stress and potential multi‑year remediation. Concentration of marks raises uncertainty over recoveries and can pressure realized returns, capital preservation and dividend sustainability.

High and persistent leverage relative to equity

Debt levels above equity amplify both upside and downside, increasing sensitivity to credit losses and funding cost changes. Persistent leverage constrains capital allocation choices (buybacks vs. reinvestment), raises refinancing risk in stress, and magnifies NAV volatility over the medium term.

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

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	487.00M	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	236.00M	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: Neutral
• Last Price: 11.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.29 is below the 20-day moving average (MA) of 13.31, below the 50-day MA of 14.12, and below the 200-day MA of 16.12, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSK.

FS KKR Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAIN	77 Outperform	$5.17B	9.57	19.07%	7.17%	11.60%	9.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSBD	66 Neutral	$1.04B	8.02	8.75%	17.34%	-16.58%	65.24%
GBDC	63 Neutral	$3.19B	9.74	8.34%	11.70%	24.12%	1.09%
HTGC	62 Neutral	$2.77B	8.13	16.02%	10.00%	-15.32%	-12.29%
BCSF	62 Neutral	$852.37M	9.14	8.18%	13.18%	-26.08%	-27.65%
FSK	56 Neutral	$3.67B	13.51	0.18%	18.52%	-13.67%	-48.49%

FS KKR Capital Corporate Events

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.