FS KKR Capital Corp. is an externally managed, non-diversified, closed-end management investment and finance company that invests primarily in the debt securities of private middle market U.S. companies. Its objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The company was founded by Michael Craig Forman on December 21, 2007 and is headquartered in Philadelphia, PA.
FSK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for FS KKR Capital Corp. To summarize, we found that FS KKR Capital Corp ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for FS KKR Capital Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.17% -- higher than merely 9.73% of stocks in our DCF forecasting set.
As a business, FSK is generating more cash flow than merely 18.7% of positive cash flow stocks in the Financial Services.
FS KKR Capital Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.34. This coverage rate is greater than that of only 16.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FSK, try ASPS, EZPW, STFC, TURN, and WETF.
On November 9, 2020, FS KKR Capital (NYSE:FSK) declared a dividend payable on January 5, 2021 to its shareholders. FS KKR Capital also announced that shareholders on the company's books on or before December 16, 2020 are entitled to the dividend. The stock will then go ex-dividend 1 business day(s) before the record date. FS KKR Capital, whose current dividend payout is $0.6, has an ex-dividend date set at December 15, 2020. The payout equates to a dividend yield of 15.77% at current price levels.The Significance Of An Ex-Dividend Date An ex-dividend date is when a company's shares stop trading with its current dividend payout in preparation for the company to announce a new one. Usually, a company's ex-dividend date falls one business day before its record date. Investors should keep t...
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FS KKR Capital Corp. (NYSE: "FSK") today announced that it has completed its previously announced underwritten offering of $1,000,000,000 in aggregate principal amount of its 3.400% unsecured notes due 2026 (the "Notes"). BofA Securities, Inc., BMO Capital Markets Corp., ING Financial Markets LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and KKR Capital Markets LLC acted as joint book-running managers for this offering. Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC acted as joint lead managers for this o...
FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of $1,000,000,000 in aggregate principal amount of its 3.400% unsecured notes due 2026 (the "Notes"). The Notes will mature on January 15, 2026 and may be redeemed in whole or in part at FSK's option at any time at par plus a "make-whole" premium, provided that the Notes may be redeemed at par one month prior to their maturity. The offering is expected to close on December 10, 2020, subject to customary closing conditions.