FS Credit Opportunities Corp. (FSCO) AI Stock Analysis

FS Credit Opportunities Corp. operates as a closed-ended fixed income fund managed by Franklin Square Capital Partners, in collaboration with FS Global Advisor, LLC and GSO Capital Partners LP. Established on January 28, 2013, the fund invests in global fixed income markets, primarily across the United States and Europe. It holds a diversified portfolio of securities, including secured and unsecured floating and fixed rate loans, bonds, and corporate credit instruments across multiple sectors. The fund utilizes an event-driven strategy, seeking total returns by investing in companies poised to benefit from corporate events such as mergers, acquisitions, and reorganizations.

In FY2025, revenue fell 18.6% to $206.3M, following a 17.4% decline in FY2024 to $253.6M. This compares to revenue of $307.2M in FY2023 and -$136.8M in FY2022. Net income decreased to $149.7M in FY2025, down from $188.1M in FY2024 and $242.9M in FY2023, while FY2022 generated net income of -$155.7M. Operating margin stood at 74.5% in FY2025, moderating from 77.5% in FY2024 and 80.5% in FY2023. Gross margin was 79.3% in FY2025 compared to 81.3% in FY2024. Operating cash flow grew to $512.2M in FY2025, up from $67.1M in FY2024 and $135.4M in FY2023.

As of June 30, 2026, FS Credit Opportunities Corp. held $332.6M in cash and short-term investments against $300.0M in total debt, resulting in net cash of $32.6M. Total assets reached $2.22B alongside shareholders' equity of $1.44B. The fund maintains a current ratio of 4.44 and a debt-to-equity ratio of 0.21. During FY2025, operating cash flow and free cash flow were both $512.2M. Capital deployment in FY2025 included $200.0M dedicated to share buybacks and $157.8M distributed in dividends paid.

FS Credit Opportunities Corp. carries a market capitalization of $1.02B at a share price of $5.04. The stock trades at a trailing P/E of 8.3x, lower than the 12.1x median of its US-listed Financial Services peers. Its price-to-sales ratio is 7.7x, above the peer median of 3.2x, while its price-to-book ratio is 0.7x and EV-to-revenue is 9.9x. Over the past year, the shares returned -11.4%, lagging the S&P 500 (SPY) return of 16.8%. Year-to-date, the stock has posted a return of -11.3%.

The fund distributes an annual forward dividend of $0.71 per share, representing a dividend yield of 14.14%. Dividends are paid on a Monthly frequency, with 5 consecutive years paid. The dividend payout ratio stands at 127.7%, and the last ex-dividend date was December 23, 2026. In FY2025, total dividends paid amounted to $157.8M.

FS Credit Opportunities Corp. does not currently have formal analyst coverage, published price targets, or consensus recommendations. Diluted EPS for the trailing twelve months ended December 31, 2025, was $0.61, while the stock closed at $5.04 on October 16, 2026. Without analyst coverage tracked for the fund, forward EPS estimates and earnings surprise history are not available.

This page is an AI-written research summary of FS Credit Opportunities Corp. (FSCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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