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FS KKR Capital
(NYSE:FSK)
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Rating:54Neutral
Price Target:
$11.00
â–¼(-8.71% Downside)
Action:Reiterated
Date:10/09/26
FSK scores mid-range primarily due to mixed fundamentals: strong cash generation is offset by weak and volatile profitability and pressured returns on equity. The latest earnings call adds modest support via improved leverage, liquidity, and shareholder-return actions, but NAV decline and credit/non-accrual risks remain. Technicals are the main drag given bearish momentum and trading below key moving averages, while valuation is helped by the very high dividend yield but tempered by negative earnings (negative P/E).
Positive Factors
Improved leverage and liquidity
Lower leverage reduces balance-sheet risk and improves flexibility to manage repayments, support portfolio investments, and absorb credit volatility. The substantial liquidity reserve also gives FSK room to fund operations and execute capital-allocation actions through the next several quarters.
Negative Factors
Elevated non-accruals and credit stress
High non-accrual exposure indicates meaningful borrower credit stress and threatens recurring interest income, asset values, and NAV stability. Additional problem investments could increase realized losses or require further marks, limiting distributable earnings and weakening returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and liquidity
Lower leverage reduces balance-sheet risk and improves flexibility to manage repayments, support portfolio investments, and absorb credit volatility. The substantial liquidity reserve also gives FSK room to fund operations and execute capital-allocation actions through the next several quarters.
Read all positive factors
FS KKR Capital (FSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.01B
Dividend Yield18.73%
Average Volume (3M)1.79M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-35.39%
EPS Growth-272.02%
CountryUS
Employees1,383
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-1.35
Shares Outstanding276,340,270
10 Day Avg. Volume2,223,895
30 Day Avg. Volume1,790,268
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 Cap3.14
Enterprise Value/Revenue9.97
Enterprise Value/Gross Profit16.47
Enterprise Value/Ebitda-225.06
Forecast
1Y Price Target
$11.71Price Target Upside-2.79% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.63
Revenue Forecast (FY)$1.14B
FS KKR Capital Business Overview & Revenue Model
Company Description
FS KKR Capital Corp. operates as a Business Development Company (BDC) with a primary investment focus on debt instruments. The firm delivers bespoke financing options specifically tailored for privately held, mid-sized American enterprises. Its in...
How the Company Makes Money
FSK makes money primarily from the investment income it earns on its portfolio of debt investments. The core revenue stream is interest income generated by loans it extends to middle-market borrowers; these loans are typically structured with stat...
FS KKR Capital Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call reflects tangible progress on strategic initiatives (KKR support, fee waiver, share repurchase kickoff, leverage reduction, portfolio rotation and strong liquidity), which have meaningfully improved the fund's financial and capital structure profile. However, results also show near-term headwinds — a 2.8% NAV decline, lower quarterly investment income, and some additions to non-accruals — and management emphasizes ongoing work to stabilize performance and normalize deal activity. Overall, positive momentum from executed strategic actions and improved leverage/liquidity slightly outweigh the headline operating and mark-to-market challenges.Positive Updates
Net Investment Income and Distribution
GAAP net investment income of $0.44 per share (adjusted NII $0.43). Q2 NII equates to an annualized yield of 9.6% based on June 30 NAV (above prior guidance of 8%–9%). Board declared Q3 distribution of $0.44 per share, consistent with payout policy.
Negative Updates
NAV Decline and Portfolio Mark-to-Market Loss
Net asset value per share declined 2.8% quarter-over-quarter from $18.83 to $18.30. GAAP portfolio value decline reduced NAV by $0.56 per share during the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Investment Income and Distribution
GAAP net investment income of $0.44 per share (adjusted NII $0.43). Q2 NII equates to an annualized yield of 9.6% based on June 30 NAV (above prior guidance of 8%–9%). Board declared Q3 distribution of $0.44 per share, consistent with payout policy.
Read all positive updates
Company Guidance
FSK guided net investment income of 8%–9% of NAV (annualized) for the balance of 2026 and declared a Q3 common dividend of $0.44/share (consistent with the policy to pay 100% of prior-quarter GAAP NII); Q2 GAAP NII was $0.44/share (adj NII $0.43), implying a 9.6% annualized yield on June 30 NAV of $18.30 (down 2.8% from $18.83). Management reiterated the $300m share repurchase program (commenced June 29) — ~377,800 shares (~$4m) repurchased in Q2 and 3.3m shares (~$36m) since Q3 began, $40m cumulative at a $10.73 weighted price — while targeting net debt-to-equity of 1.0–1.25x (net 122% at June 30 vs. 131% prior quarter) and maintaining ~$3.5bn of available liquidity. Supporting actions highlighted in the guidance include KKR’s four‑quarter waiver of 50% of its subordinated incentive fee (a $11m benefit in Q2), a completed $150m $11/share tender and a $150m convertible preferred purchase (5% cash or 7% PIK, stepping +1% after 5.5 years). Relevant portfolio/operating metrics cited alongside the guidance: portfolio fair value $11.4bn (232 companies), weighted-average yield on accruing debt 9.8%, weighted-average EBITDA $241m (median $130m), weighted YoY EBITDA growth ~6%, median interest coverage ~1.9x, and non-accruals 7.1% of cost (3.8% of fair value).FS KKR Capital Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 948.00M | 1.17B | 1.11B | 1.23B | 463.00M | 1.76B |
| Gross Profit | 574.00M | 815.00M | 664.00M | 779.00M | 112.00M | 1.54B |
| EBITDA | -42.00M | 511.00M | 608.00M | 721.00M | 116.00M | 1.53B |
| Net Income | -375.00M | 11.00M | 585.00M | 696.00M | 92.00M | 1.51B |
Balance Sheet | ||||||
| Total Assets | 11.99B | 13.73B | 14.22B | 15.47B | 16.12B | 17.23B |
| Cash, Cash Equivalents and Short-Term Investments | 107.00M | 181.00M | 296.00M | 231.00M | 251.00M | 377.00M |
| Total Debt | 6.47B | 7.63B | 7.35B | 8.19B | 8.69B | 9.14B |
| Total Liabilities | 6.73B | 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 | 1.33B | 592.00M | 1.90B | 631.00M | 1.01B | 385.00M |
| Operating Cash Flow | 1.33B | 592.00M | 1.90B | 631.00M | 1.01B | 385.00M |
| Investing Cash Flow | 596.00M | 0.00 | 0.00 | 753.00M | 99.00M | -1.02B |
| Financing Cash Flow | -2.13B | -679.00M | -1.84B | -1.40B | -1.23B | 825.00M |
FS KKR Capital Technical Analysis
Negative
12.05
Price Trends
11.41
Negative
10.78
Positive
10.82
Positive
Market Momentum
-0.17
Positive
38.32
Neutral
31.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSK, the sentiment is Negative. The current price of 12.05 is above the 20-day moving average (MA) of 11.18, above the 50-day MA of 11.41, and above the 200-day MA of 10.82, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSK.
FS KKR Capital Risk Analysis
FS KKR Capital disclosed 8 risk factors in its most recent earnings report. FS KKR Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We issued the Convertible Preferred Stock on June 29, 2026 and may in the future determine to issue additional preferred stock, which could adversely affect the market value of our common stock. Q2, 2026
2.
Our common stockholders may experience dilution upon the conversion of the Convertible Preferred Stock. Q2, 2026
3.
Holders of the Convertible Preferred Stock have the right to elect members of our Board of Directors and have class voting rights on certain matters, which may limit our ability to pursue certain actions that might otherwise be in the interests of our common stockholders. Q2, 2026
FS KKR Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.64B | 18.09 | 0.02% | 10.37% | -17.25% | -53.04% | |
73 Outperform | $13.38B | 13.80 | 6.78% | 10.34% | 10.38% | -34.10% | |
70 Outperform | $4.99B | 18.07 | 3.95% | 13.65% | 1.32% | -62.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.14B | 22.02 | 3.82% | 11.40% | -8.83% | -54.08% | |
63 Neutral | $5.56B | 18.77 | 4.78% | 12.91% | -14.94% | -55.20% | |
54 Neutral | $3.01B | -8.07 | -6.65% | 18.82% | -35.39% | -272.02% |
* Financial Sector Average
FSK
FS KKR Capital
10.89
-1.56
-12.52%
GBDC
Golub Capital Bdc
12.11
-0.29
-2.36%
ARCC
Ares Capital
18.63
0.99
5.64%
TSLX
Sixth Street Specialty Lending
17.19
-2.49
-12.66%
OBDC
Blue Owl Capital
10.12
-0.93
-8.43%
BXSL
Blackstone Secured Lending Fund
23.85
0.92
4.00%
FS KKR Capital Corporate Events
DividendsFinancial Disclosures
FS KKR Capital Declares Q4 and Special Distributions
Positive
Oct 8, 2026
FS KKR Capital Corp. said its board on October 7, 2026, approved a fourth-quarter cash distribution of $0.44 per share and a special distribution of $0.20 per share, with payments scheduled for mid to late December to shareholders of record in ear...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
FS KKR Capital Share Issuance Proposal Approved
Positive
Aug 20, 2026
FS KKR Capital Corp. held its Annual Meeting of Stockholders on June 18, 2026, and adjourned voting on a key share issuance proposal to allow more time for solicitation before reconvening on August 20, 2026. At the reconvened meeting, 146,341,116 ...
Business Operations and StrategyRegulatory Filings and Compliance
FS KKR Capital Releases New Investor Presentations Online
Neutral
Aug 13, 2026
FS KKR Capital Corp. announced that it would make new investor presentations available on its website after the market close on August 13, 2026. The materials, accessible through the Events Presentations section of its investor relations site, ar...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
FS KKR Capital Posts Q2 Results, Declares Dividend
Positive
Aug 6, 2026
FS KKR Capital reported second-quarter 2026 results on August 6, 2026, posting net investment income of $0.44 per share, adjusted net investment income of $0.43, and a decline in net asset value to $18.30 per share amid reduced realized and unreal...
Financial Disclosures
FS KKR Capital Schedules Q2 2026 Earnings Release
Neutral
Jul 9, 2026
FS KKR Capital Corp. announced on July 9, 2026, that it will release its second quarter 2026 financial results before the New York Stock Exchange opens on Thursday, August 6, 2026. The company will host a live webcast conference call at 9:00 a.m. ...
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.