Over the last year, FS KKR Capital logged a 2.3% change, with its stock price reaching a high of $22.57 and a low of $16.7. Over the same period, the stock underperformed the S&P 500 index by -14.0%. As of April 2023, the company's 50-day average price was $18.91. FS KKR Capital Corp. is a business development company specializing in investments in debt securities. The mid-cap Finance company is based in Philadelphia, PA. FS KKR Capital has offered a 13.4% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $279,000 | -$373,000 | $1,534,000 | $98,000 |
| Interest Income (k) | $506,000 | $340,000 | $563,000 | $904,000 |
| Net Margins | 88.17% | 108.58% | 98.76% | 93.88% |
| Net Income (k) | $246,000 | -$405,000 | $1,515,000 | $92,000 |
| Earnings Per Share | $1.9 | -$3.26 | $7.16 | $0.24 |
| EPS Growth | n/a | -271.58% | 319.63% | -96.65% |
| Diluted Shares (k) | 129,737 | 124,291 | 211,670 | 280,066 |
| Free Cash Flow (k) | -$256,000 | $675,000 | -$639,000 | $1,107,000 |
Trades Below Its Graham Number but Has an Elevated P/E Ratio:
FS KKR Capital has a trailing twelve month P/E ratio of 78.8, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $2.94, the company has a forward P/E ratio of 6.4. The 9.1% compound average growth rate of FS KKR Capital's historical and projected earnings per share yields a PEG ratio of 8.64. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing FS KKR Capital in terms of its equity because its P/B ratio is 0.76 while the sector average is 1.57. The company's shares are currently trading -34.7% below their Graham number. In conclusion, FS KKR Capital's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
FS KKR Capital Has an Average Rating of Buy:
The 8 analysts following FS KKR Capital have set target prices ranging from $18.5 to $24.0 per share, for an average of $21.19 with a buy rating. As of April 2023, the company is trading -10.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
FS KKR Capital has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 36.9% of the company's shares, and the insider ownership rate stands at 0.21%, suggesting a small amount of insider investors. The largest shareholder is Kohlberg Kravis Roberts & Co. L.P., whose 7% stake in the company is worth $374,982,763.
