FSK

FS KKR CapitalNYSE:FSK Stock Report

Market Cap

US$6.5b

7D

-3.5%

1Y

41.2%

Updated

16 Sep, 2021

Data

Company Financials +
FSK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health2/6
Dividends3/6

FSK Overview

FS KKR Capital Corp. is a business development company specializing in investments in debt securities.

FS KKR Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FS KKR Capital
Historical stock prices
Current Share PriceUS$22.45
52 Week HighUS$14.22
52 Week LowUS$23.45
Beta1.68
1 Month Change-1.66%
3 Month Change2.51%
1 Year Change41.20%
3 Year Change-22.59%
5 Year Change-40.36%
Change since IPO-45.24%

Recent News & Updates

Aug 23

FS KKR: Attractive 12% Yield On Offer At A Bargain Price

FS KKR delivers some solid financial results, outperforming across the top and bottom lines at its first post-merger quarter. The recent Home Partners of America sale could unlock additional earnings potential, further boosting earnings down the line. With shares still at a wide discount to NAV despite offering an increasingly attractive capital return, I see upside ahead.

May 10

FS KKR Capital NII beats by $0.01, beats on total investment income

FS KKR Capital (FSK): Q1 NII of $0.63 beats by $0.01.Total investment income of $151M (-15.6% Y/Y) beats by $1.18M.Net asset value of $26.03 per share, compared to $25.02 per share as of December 31, 2020, an increase of 4.0%.Net debt to equity ratio(3) as of the end of the quarter was

Dec 14

FS KKR Capital goes ex-dividend tomorrow

FS KKR Capital (FSK) had declared $0.60/share quarterly dividend, in line with previous.Payable Jan. 5; for shareholders of record Dec. 16; ex-div Dec. 15.See FSK Dividend Scorecard, Yield Chart, & Dividend Growth.

Dec 04

FS KKR Capital's Merger Creates A 25% NAV Discount Opportunity For Investors

FS KKR Capital Corp. (FSK) and FS KKR Capital Corp. II (FSKR) have finally entered into a plan to merge creating a $7.2B behemoth of a BDC. For those following FS/KKR's activities since April of 2018, this move does not come as a surprise and is rather the culmination of 2.5 years of restructuring. The transaction is expected to close during Q2 or Q3 of 2021 following shareholder approval. Both companies saw their shares pop

Shareholder Returns

FSKUS Capital MarketsUS Market
7D-3.5%-0.4%-0.6%
1Y41.2%63.9%33.7%

Return vs Industry: FSK underperformed the US Capital Markets industry which returned 61.6% over the past year.

Return vs Market: FSK exceeded the US Market which returned 30.7% over the past year.

Price Volatility

Is FSK's price volatile compared to industry and market?
FSK volatility
FSK Beta1.68
Industry Beta1.19
Market Beta1

Stable Share Price: FSK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FSK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007n/aMichael Formanhttps://www.fsinvestmentcorp.com

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. It also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans, or mezzanine loans.

FS KKR Capital Fundamentals Summary

How do FS KKR Capital's earnings and revenue compare to its market cap?
FSK fundamental statistics
Market CapUS$6.48b
Earnings (TTM)US$1.42b
Revenue (TTM)US$667.00m

4.5x

P/E Ratio

9.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FSK income statement (TTM)
RevenueUS$667.00m
Cost of RevenueUS$0
Gross ProfitUS$667.00m
Expenses-US$750.00m
EarningsUS$1.42b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.86
Gross Margin100.00%
Net Profit Margin212.44%
Debt/Equity Ratio100.9%

How did FSK perform over the long term?

See historical performance and comparison

Dividends

10.7%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is FS KKR Capital undervalued compared to its fair value and its price relative to the market?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSK ($22.73) is trading below our estimate of fair value ($41.58)

Significantly Below Fair Value: FSK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSK is good value based on its PE Ratio (4.6x) compared to the US Capital Markets industry average (13.3x).

PE vs Market: FSK is good value based on its PE Ratio (4.6x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: FSK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FSK is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (61.4x).

Future Growth

How is FS KKR Capital forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSK's earnings are forecast to decline over the next 3 years (-42.3% per year).

Earnings vs Market: FSK's earnings are forecast to decline over the next 3 years (-42.3% per year).

High Growth Earnings: FSK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FSK's revenue (24.3% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: FSK's revenue (24.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FSK's Return on Equity is forecast to be low in 3 years time (9.1%).

Past Performance

How has FS KKR Capital performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSK has a large one-off gain of $1.1B impacting its June 30 2021 financial results.

Growing Profit Margin: FSK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FSK's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: FSK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FSK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (58.7%).


Return on Equity

High ROE: FSK's Return on Equity (18.5%) is considered low.

Financial Health

How is FS KKR Capital's financial position?


Financial Position Analysis

Short Term Liabilities: FSK's short term assets ($975.0M) exceed its short term liabilities ($350.0M).

Long Term Liabilities: FSK's short term assets ($975.0M) do not cover its long term liabilities ($7.7B).


Debt to Equity History and Analysis

Debt Level: FSK's debt to equity ratio (100.9%) is considered high.

Reducing Debt: FSK's debt to equity ratio has increased from 76% to 100.9% over the past 5 years.

Debt Coverage: FSK's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: FSK's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Dividend

What is FS KKR Capital current dividend yield, its reliability and sustainability?

10.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSK's dividend (10.56%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: FSK's dividend (10.56%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: FSK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FSK has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), FSK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FSK's dividends in 3 years are not forecast to be well covered by earnings (97.6% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Michael Forman (60 yo)

3.67yrs

Tenure

Mr. Michael Craig Forman, JD, serves as the Chief Executive Officer at FS Structured Products Advisor, LLC. He also serves as the Chief Executive Officer at FS/KKR Advisor, LLC. He serves as the Chief Exec...


Leadership Team

Experienced Management: FSK's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: FSK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FSK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 130.4%.


Top Shareholders

Company Information

FS KKR Capital Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: FS KKR Capital Corp.
  • Ticker: FSK
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$6.481b
  • Shares outstanding: 285.13m
  • Website: https://www.fsinvestmentcorp.com

Location

  • FS KKR Capital Corp.
  • 201 Rouse Boulevard
  • Philadelphia
  • Pennsylvania
  • 19112
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:13
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.