FS KKR Capital Corp. Fundamental Analysis (NYSE: FSK)
FS KKR Capital Corp. (NYSE: FSK) shows moderate financial fundamentals with a PE ratio of -8.81, profit margin of -39.56%, and ROE of -6.65%. The company generates $0.9B in annual revenue with moderate year-over-year growth of 5.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -4.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FSK's fundamental strength across five key dimensions:
Efficiency Score
WeakFSK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFSK trades at attractive valuation levels.
Growth Score
ModerateFSK shows steady but slowing expansion.
Financial Health Score
ModerateFSK shows balanced financial health with some risks.
Profitability Score
WeakFSK struggles to sustain strong margins.
Key Financial Metrics
Is FSK Expensive or Cheap?
P/E Ratio
FSK trades at -8.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FSK's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values FS KKR Capital Corp. at 0.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -72.20 times EBITDA. This is generally considered low.
How Well Does FSK Make Money?
Net Profit Margin
For every $100 in sales, FS KKR Capital Corp. keeps $-39.56 as profit after all expenses.
Operating Margin
Core operations generate -0.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.65 in profit for every $100 of shareholder equity.
ROA
FS KKR Capital Corp. generates $-3.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FS KKR Capital Corp. generates strong operating cash flow of $1.58B, reflecting robust business health.
Free Cash Flow
FS KKR Capital Corp. generates strong free cash flow of $1.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.65 in free cash annually.
FCF Yield
FSK converts 47.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-8.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How FSK Stacks Against Its Sector Peers
| Metric | FSK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -8.81 | 21.10 | Better (Cheaper) |
| ROE | -6.65% | 652.00% | Weak |
| Net Margin | -39.56% | -1585.00% (disorted) | Weak |
| Debt/Equity | 1.23 | 0.91 | Weak (High Leverage) |
| Current Ratio | 2.41 | 910.69 | Strong Liquidity |
| ROA | -3.13% | -574.00% (disorted) | Weak |
FSK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FS KKR Capital Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
356.00%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
101.21%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-63.00%
Industry Style: Value, Dividend, Cyclical
Declining