(FSK) FS KKR Capital - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 3.057m USD | Total Return: -39.6% in 12m
Avg Turnover: 36.9M
EPS Trend: -91.6%
Qual. Beats: -2
Rev. Trend: -62.2%
Qual. Beats: -2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
FS KKR Capital Corp (FSK) is a business development company (BDC) that provides customized credit solutions to private middle-market firms in the United States. The fund primarily originates and invests in senior secured debt, including first-lien and second-lien loans, while selectively participating in subordinated debt and mezzanine financing. BDCs like FSK are required by law to distribute at least 90% of their taxable income to shareholders, often resulting in higher dividend yields compared to traditional corporations.
The investment strategy targets companies with annual revenues between $10 million and $2.5 billion, specifically focusing on upper middle-market entities with EBITDA ranging from $50 million to over $150 million. FSK avoids venture-stage startups and turnaround situations, preferring established businesses with stable cash flows. In addition to debt, the firm may acquire equity interests such as warrants, options, or minority stakes through co-investments with financial sponsors. Examining the companys historical performance on ValueRay can provide deeper insights into its portfolio health.
Exit strategies for these investments include secondary market sales, repayments, or liquidity events such as initial public offerings and mergers. By operating as a direct lender, FSK fills a financing gap left by traditional commercial banks, which have faced increased regulatory constraints on lending to mid-sized, non-investment grade companies.
- Net interest margin fluctuates based on Federal Reserve benchmark interest rate shifts
- Credit quality of middle market borrowers impacts non-accrual rates and valuations
- Direct lending volume growth depends on private equity sponsor deal activity
- Asset-liability mismatch risks influenced by floating rate debt versus fixed funding costs
- Dividend coverage sustainability relies on consistent fee income and investment exits
| Net Income: -550.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -3.63 > 1.0 |
| NWC/Revenue: 82.47% < 20% (prev 42.94%; Δ 39.53% < -1%) |
| CFO/TA 0.03 > 3% & CFO 409.0m > Net Income -550.0m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (280.1m) vs 12m ago 0.00% < -2% |
| Gross Margin: 33.56% > 18% (prev 0.57%; Δ 3.30k% > 0.5%) |
| Asset Turnover: 4.32% > 50% (prev 7.07%; Δ -2.75% > 0%) |
| Interest Coverage Ratio: -0.70 > 6 (EBITDA TTM -145.0m / Interest Expense TTM 461.0m) |
| A: 0.04 (Total Current Assets 494.0m - Total Current Liabilities 0.0) / Total Assets 12.8b |
| B: -0.31 (Retained Earnings -3.92b / Total Assets 12.8b) |
| C: -0.02 (EBIT TTM -323.0m / Avg Total Assets 13.9b) |
| D: -0.52 (Book Value of Equity -3.91b / Total Liabilities 7.55b) |
| Altman-Z'' = -1.44 = CCC |
As of May 30, 2026, the stock is trading at USD 10.87 with a total of 2,793,364 shares traded.
Over the past week, the price has changed by -0.55%,
over one month by +1.78%,
over three months by +5.59% and
over the past year by -39.60%.
FS KKR Capital has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold FSK.
- StrongBuy: 1
- Buy: 0
- Hold: 8
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 11.5 | 5.8% |
P/E Forward = 6.4185
P/S = 2.1217
P/B = 0.5725
P/EG = 3.2724
Revenue TTM = 599.0m USD
EBIT TTM = -323.0m USD
EBITDA TTM = -145.0m USD
Long Term Debt = 7.63b USD (from longTermDebt, last fiscal year)
Short Term Debt = unknown (none)
Debt = 7.63b USD (corrected: LT Debt 7.63b + ST Debt none)
Net Debt = 7.51b USD (calculated: Debt 7.63b - CCE 124.0m)
Enterprise Value = 10.6b USD (3.06b + Debt 7.63b - CCE 124.0m)
Interest Coverage Ratio = -0.70 (Ebit TTM -323.0m / Interest Expense TTM 461.0m)
EV/FCF = 25.84x (Enterprise Value 10.6b / FCF TTM 409.0m)
FCF Yield = 3.87% (FCF TTM 409.0m / Enterprise Value 10.6b)
FCF Margin = 68.28% (FCF TTM 409.0m / Revenue TTM 599.0m)
Net Margin = -91.82% (Net Income TTM -550.0m / Revenue TTM 599.0m)
Gross Margin = 33.56% ((Revenue TTM 599.0m - Cost of Revenue TTM 398.0m) / Revenue TTM)
Gross Margin QoQ = 27.62% (prev 61.24%)
Tobins Q-Ratio = 0.82 (Enterprise Value 10.6b / Total Assets 12.8b)
Interest Expense / Debt = 6.04% (Interest Expense 461.0m / Debt 7.63b)
Taxrate = 21.0% (US default 21%)
NOPAT = -255.2m (EBIT -323.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = unknown (Total Current Assets 494.0m / Total Current Liabilities 0.0)
Debt / Equity = 1.45 (Debt 7.63b / totalStockholderEquity, last quarter 5.27b)
Debt / EBITDA = -51.79 (negative EBITDA) (Net Debt 7.51b / EBITDA -145.0m)
Debt / FCF = 18.36 (Net Debt 7.51b / FCF TTM 409.0m)
Total Stockholder Equity = 5.86b (last 4 quarters mean from totalStockholderEquity)
RoA = -3.97% (Net Income -550.0m / Total Assets 12.8b)
RoE = -5.62% (Net Income TTM -550.0m / Total Stockholder Equity 9.78b)
RoCE = -1.85% (EBIT -323.0m / Capital Employed (Equity 9.78b + L.T.Debt 7.63b))
RoIC = -2.54% (negative operating profit) (EBIT -323.0m / (Assets 12.8b - Curr.Liab 0.0 - Cash 124.0m))
WACC = 5.87% (E(3.06b)/V(10.7b) * Re(8.60%) + D(7.63b)/V(10.7b) * Rd(6.04%) * (1-Tc(0.21)))
Discount Rate = 8.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 80.28 | Cagr: 0.00%
[DCF] Terminal Value 73.10% ; FCFF base≈652.2m ; Y1≈571.9m ; Y5≈462.1m
[DCF] Fair Price = N/A (negative equity: EV 7.42b - Net Debt 7.51b = -92.7m; debt exceeds intrinsic value)
EPS Correlation: -91.61 | EPS CAGR: -13.49% | SUE: -2.88 | # QB: -2
Revenue Correlation: -62.24 | Revenue CAGR: -15.53% | SUE: -0.98 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.42 | Chg30d=-3.92% | Revisions=-45% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.42 | Chg30d=-2.57% | Revisions=-20% | Analysts=10
EPS current Year (2026-12-31): EPS=1.62 | Chg30d=-4.72% | Revisions=-54% | GrowthEPS=-30.6% | GrowthRev=-25.3%
EPS next Year (2027-12-31): EPS=1.55 | Chg30d=-4.64% | Revisions=-54% | GrowthEPS=-4.5% | GrowthRev=-4.5%
[Analyst] Revisions Ratio: -54%