FS KKR Capital Corp. (FSK)
Financial Services · NYQ · US
Fundamentals
Valuation and ratings
FS KKR Capital Corp. trades at USD11.11, which is 69% below the USD18.83 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 35 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
About FS KKR Capital Corp.
FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S. companies. 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. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seek to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor. Additionally, on an opportunistic basis, the fund may also invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations, or companies with speculative business plans. It seeks to invest in small and middle-market companies based in United States. The fund seeks to invest in firms with annual revenue between $10 million to $2500 million. It focus on providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million to $150+ million at the time of investment. It seeks to exit from securities by selling them in a privately negotiated over- the- counter market. For any investments that are not able to be sold within the secondary market, the firm seeks to exit such investments through repayment, an initial public offering of equity securities, merger, sale or recapitalization.
FSK passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
7 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- D. E. Shaw, D. E. Shaw & Co., Inc.$22.55M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$4.15M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$1.03M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$649.4K · 0.0% of book
- Bridgewater Associates, LP$353.2K · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is FS KKR Capital Corp. (FSK) undervalued?
Against our discounted cash flow estimate of USD18.83, FSK at USD11.11 is 69% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own FSK?
7 of the institutions we track reported a position in FSK in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
The full research page for FSK, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.