FS KKR Capital Corp (FSK)

Price$12.51Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look cheap on assets and income, but the discount matches unusually high credit risk.

At the observed quote, FSK trades at about 67% of its June 30 net asset value, meaning the market values the company roughly one-third below its reported assets after liabilities. Net investment income, which is interest and fee income left after expenses, is guided at about $1.46-$1.65 a share annually. That puts the shares near 7.5-8.4 times guided income. The $0.44 quarterly distribution annualizes near 14%, but the guide covers only about 83%-94% of that payout, making the valuation look balanced rather than plainly cheap. FS KKR Capital Corp.+1

Big pictureIncome from lending still supports payments, while falling asset values keep eroding the cushion beneath shareholders.

Second-quarter net investment income improved to $0.44 per share from $0.42 in the first quarter, so the core lending engine remains profitable. Yet total results stayed negative because realized and unrealized portfolio losses outweighed that income, and net asset value fell to $18.30 from $18.83 in one quarter. Using the supplied history, equity per share has fallen about 23% since year-end 2024. Reported operating cash flow was $592 million in 2025 against $784 million of dividends, though that measure is noisy for a lender because loan purchases and repayments run through operations. Pasted text FS KKR Capital Corp.

Business strengthLeverage and problem loans improved, but the portfolio still carries meaningful credit stress and refinancing exposure.

At June 30, 63% of investments were senior secured, meaning they generally sit ahead of junior claims on borrower assets. Loans not paying interest were 3.8% of portfolio fair value, better than 4.2% in March but still 7.1% of original cost. Debt-to-equity fell to 127% from 138%, with $3.1 billion of financing availability and 72% of debt unsecured. Still, a one-percentage-point rate decline was estimated in March to cut net interest income about 5.2%, so lower rates can squeeze earnings even if credit quality stabilizes. SEC+2SEC+2

What could change the storyStable asset values and disciplined buybacks could unlock upside; renewed losses or dilution would erase it.

The bull case is stabilization. FSK has a $300 million repurchase authorization and had spent about $40 million through August 5 at an average $10.73, well below reported net assets, so each repurchase can raise net assets per remaining share. KKR also injected $150 million through 5% preferred stock, but conversion begins from $18.83 and could add about 8.0 million common shares if converted. A four-quarter fee waiver boosts near-term income. Continued portfolio losses, an uncovered dividend, or preferred conversion without matching value growth would weaken the thesis. SEC+2SEC+2

AI: News

Second-quarter earnings beatLending income beat expectations, leverage fell, and problem loans improved, but asset value kept sliding.

On August 6, FSK reported second-quarter net investment income of $0.44 per share versus a $0.41 market estimate, while revenue of $290 million also topped expectations. Net asset value still fell 2.8% to $18.30, but net debt-to-equity improved to 122% from 131% and non-accrual loans fell to 3.8% of fair value from 4.2%. Shares were up about 7.8% later that morning; the timing suggests the report mattered, but does not prove it caused the full move. FS KKR Capital Corp.+1

Capital support package closedKKR added capital and buying support while FSK launched buybacks, but the new securities rank ahead of common shares.

The KKR tender expired June 11 and accepted about 13.6 million shares at $11 each, using roughly $150 million. On June 29, FSK also closed a separate $150 million preferred-stock sale to KKR and began its $300 million common-share repurchase program. The preferred stock pays 5% in cash and initially converts at $18.83. These steps supplied capital and visible buying support, but the preferred shares rank ahead of common stock and can become common shares later, so the package is not free support. SEC+2FS KKR Capital Corp.+2

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$1.52B	$1.72B	$1.83B	$1.64B	$1.08B	$639.0M	—
Operating expenses	$68.0M	$56.0M	$58.0M	−$4.0M	—	—	—
Net income	$11.0M	$585.0M	$696.0M	$92.0M	$1.51B	−$405.0M	—
Net profit margin	0.72%	33.99%	38.03%	5.63%	140.15%	−63.38%	—
Basic EPSper basic share	$0.04	$2.09	$2.48	$0.32	$7.16	$7.16	-$3.26
Diluted EPSper diluted share	$0.04	$2.09	$2.48	$0.32	$7.16	$7.16	-$3.26

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

4.07%of listed shares

OAK HILL ADVISORS LP11.37M shares · Jun 30, 2026

View holders

Top 20 reported holders of FSK
Holder	% owned
OAK HILL ADVISORS LP	4.07%11.37M shares
UBS Group AG	2.06%5.76M shares
VAN ECK ASSOCIATES CORP	1.92%5.38M shares
VICTORY CAPITAL MANAGEMENT INC	1.80%5.03M shares
LPL Financial LLC	1.74%4.87M shares
Saba Capital Management, L.P.	1.51%4.22M shares
Cambridge Investment Research Advisors, Inc.	1.21%3.4M shares
MORGAN STANLEY	1.03%2.88M shares
Legal & General Group Plc	0.98%2.74M shares
Silver Point Capital L.P.	0.97%2.72M shares
Generali Asset Management SPA SGR	0.90%2.53M shares
CURA WEALTH ADVISORS, LLC	0.76%2.13M shares
Callodine Capital Management, LP	0.75%2.11M shares
COMMONWEALTH EQUITY SERVICES, LLC	0.69%1.93M shares
Russell Investments Group, Ltd.	0.57%1.59M shares
D. E. Shaw & Co., Inc.	0.54%1.52M shares
Invesco Ltd.	0.54%1.5M shares
Rockefeller Capital Management L.P.	0.52%1.45M shares
Beach Point Capital Management LP	0.44%1.22M shares
CastleKnight Management LP	0.42%1.18M shares

Percentages use 279.69M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys13$819.8K disclosed value

Sells (SEC code S)4$4.72M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 27, 2026Form 4	KROPP JAMES HDirector	BuyCommon Stock · indirect	1.7K	$11.16	$18.6K	27.0K
Feb 27, 2026Form 4	Pietrzak DanielPresident and CIO	BuyCommon Stock	5.0K	$11.25	$56.3K	64.8K
Dec 5, 2025Form 4	Hopkins Jerel ADirector	BuyCommon Stock · indirect	450	$15.50	$7.0K	10.1K
Nov 11, 2025Form 4	Forman Michael C.Chief Executive Officer	BuyCommon Stock · indirect	10.0K	$15.50	$155.0K	24.2K
Nov 7, 2025Form 4	Pietrzak DanielPresident and CIO	BuyCommon Stock	10.0K	$15.15	$151.5K	59.8K