(FSK) FS KKR Capital - Ratings and Ratios

FS KKR Capital Corp is a business development company that provides tailored credit solutions to private middle-market US companies, focusing on senior secured debt and, to a lesser extent, subordinated debt. The company invests in a range of debt securities, including first lien senior secured loans, second lien secured loans, and mezzanine loans, often receiving equity interests as additional consideration.

The firms investment strategy is centered on providing customized, one-stop credit solutions to private upper middle-market companies with annual EBITDA between $50 million and $100 million. It targets companies with annual revenue between $10 million and $2.5 billion, avoiding start-ups, turnaround situations, and companies with speculative business plans. FS KKR Capital Corp also invests in corporate bonds and similar debt securities on an opportunistic basis.

The companys investment approach is characterized by a focus on debt securities with a relatively low risk profile, which is reflected in its investment portfolio. As a business development company, FS KKR Capital Corp is required to distribute a significant portion of its income to shareholders, making its dividend yield an important consideration for investors.

Analyzing the technical data, we can see that FSKs stock price has been trending upward, with a 20-day SMA of $21.03 and a 50-day SMA of $20.27. The stock is currently trading at $21.30, near its 20-day SMA. The ATR indicates a relatively low volatility, with a 1.80% average true range. Considering the fundamental data, FSKs P/E ratio is 11.10, and its forward P/E is 8.35, indicating a relatively attractive valuation. The companys RoE is 8.02%, which is a respectable return given the current market conditions.

Based on the technical and fundamental data, a forecast for FSKs stock price could be constructed. Assuming a continued upward trend in the stock price, with a potential target price of $23.50, representing a 10% increase from the current price. However, this forecast is contingent on the companys ability to maintain its investment performance and continue to distribute attractive dividends to shareholders. A potential risk to this forecast is a decline in the overall market or a sector-specific downturn, which could negatively impact FSKs stock price.