FS KKR Capital Corp. (FSK) AI Stock Analysis

FS KKR Capital Corp. operates as a business development company specializing in debt securities investments, focusing on providing tailored credit solutions to private middle market companies across the United States. It primarily targets the senior secured debt market, including first lien senior secured loans, second lien secured loans, and mezzanine or subordinated loans. The company invests in businesses with annual revenues between $10 million and $2.5 billion and annual EBITDA typically between $50 million and $100 million. It also integrates equity components such as warrants, options, or direct equity investments. The firm avoids start-up ventures, turnarounds, or companies with speculative profiles.

From FY2020 to FY2025, revenue achieved a 5-year CAGR of 12.9%. Annual revenue moved from $1.08B in FY2021 to $463.0M in FY2022, before climbing to $1.23B in FY2023. Revenue was $1.11B in FY2024 and rose 5.5% to $1.17B in FY2025, with net income falling to $11.0M and EPS of $2.32. Gross margin in FY2025 stood at 69.6% and operating margin was 49.5%. In the trailing twelve months ending June 30, 2026, revenue totaled $1.32B with an operating margin of 73.1% and a net profit margin of -28.5%. For the latest quarter, revenue fell 27.1% year-over-year, while quarterly earnings grew 33.8%.

As of June 30, 2026, FS KKR Capital Corp. held $107.0M in cash and short-term investments against total debt of $6.47B, resulting in net debt of $6.36B. Total assets stood at $11.99B, while shareholders' equity was $5.27B. The company recorded a current ratio of 2.41 and a debt-to-equity ratio of 1.23. In FY2025, the firm generated operating cash flow and free cash flow of $592.0M while paying $784.0M in dividends.

With a market capitalization of $2.85B and an enterprise value of $9.37B, FSK trades at a forward P/E of 7.9x, which is below the 10.8x median of its US-listed Financial Services peers. Its price-to-sales ratio is 2.2x compared to the peer median of 3.2x, while its price-to-book ratio is 0.6x and EV-to-revenue stands at 94.4x. Over the past year, FSK shares fell 17.0%, compared to a 16.8% gain for the S&P 500 (SPY). Over five years, the stock returned -5.0% versus an 83.0% return for the benchmark.

FSK pays a quarterly dividend with a forward annual dividend of $1.76 per share, corresponding to a dividend yield of 17.04%. The company has paid dividends for 13 consecutive years, with an annualized 5-year dividend growth rate of 1.8%. Its payout ratio stands at 107.4%, and the last ex-dividend date in the record is December 16, 2026.

Wall Street coverage consists of 1 Strong Buy, 9 Holds, and 1 Strong Sell. The mean price target is $12.05, representing 16.7% above the last close of $10.33. For the fiscal year ending December 31, 2026, analysts expect revenue of $1.14B and EPS of $1.62, representing a 30.8% EPS decline. For the next fiscal year, 11 analysts project revenue of $1.07B and EPS of $1.50. The company beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of FS KKR Capital Corp. (FSK). 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.

Related: FSK income statement, FSK balance sheet, FSK key metrics, FSK analyst forecast, FSK chart. See the FSK stock overview for the latest quote and news.