FS KKR Capital Corp. Common Stock (FSK)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Generates $374 million in annual free cash flow (12.5% yield on market cap)
• Attractive 23.4% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($4) with negative 147% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 141.3% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

FS KKR Capital Corp. Common Stock is a small-cap financial services company valued at $3.0 billion. Revenue stands at $1.5 billion, though the company is currently unprofitable. From a quality standpoint, FS shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.1 warrants caution. On valuation, the stock is commanding a steep 264.5x multiple, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at -141.3% and profit growth of -177.6%. The 23.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $374 million in annual free cash flow (12.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 265x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer