(FSK) FS KKR Capital - Ratings and Ratios

FS KKR Capital Corp. (NYSE: FSK) is a leading business development company (BDC) specializing in debt securities, primarily targeting private middle-market U.S. companies. The firm provides tailored credit solutions, focusing on senior secured debt and, to a lesser extent, subordinated debt. It acquires debt interests through secondary market transactions or directly from companies as primary market investments. Its portfolio includes first lien senior secured loans, second lien secured loans, and mezzanine loans. Additionally, the company often receives equity interests such as warrants or options as part of its debt investments. It also purchases minority equity stakes in target companies, either alongside debt investments or through co-investments with financial sponsors. Opportunistically, the firm invests in corporate bonds and other debt securities. The company avoids investments in start-ups, turnaround situations, or businesses with speculative plans, focusing instead on stable, cash-flow-generating companies. Its target portfolio consists of U.S.-based firms with annual revenues ranging from $10 million to $2.5 billion and EBITDA between $50 million and $100 million at the time of investment. The firm typically exits investments through private over-the-counter sales, repayments, IPOs, mergers, sales, or recapitalizations. For more information, visit https://www.fskkradvisor.com.

From a technical perspective, FSKs stock has shown a recent uptrend, with its last price of $20.17 exceeding the 20-day SMA of $19.66. However, the 50-day SMA of $20.91 suggests potential resistance in the near term. The ATR of 0.67 indicates moderate volatility. On the fundamental side, FSKs market cap of $5.478 billion reflects its scale as a leading BDC. Its P/E ratio of 9.36 and forward P/E of 7.64 suggest a reasonable valuation relative to earnings. The P/B ratio of 0.83 indicates that the stock is trading below its book value, which may signal undervaluation. The price-to-sales ratio of 3.18 aligns with industry averages, while the return on equity of 8.83% reflects modest profitability.