Investment Thesis
FS KKR Capital Corp is experiencing severe financial deterioration with a 441M net loss (-98.1% YoY) and negative returns (ROE -8.4%, ROA -3.4%), indicating significant portfolio impairments. While positive operating cash flow of 245M provides some stability, the combination of high leverage (1.38x debt/equity), weak liquidity (133M cash on 12.8B assets), and negative profitability creates substantial risk.
Strengths
- Positive operating cash flow of 245M demonstrates underlying income generation
- Substantial asset base of 12.8B provides scale and diversification
- Balance sheet not completely insolvent with 5.3B stockholders equity
Risks
- Massive unrealized losses totaling 441M with -98.1% YoY decline signals deteriorating portfolio quality
- High leverage of 1.38x combined with negative earnings creates debt service strain and limits financial flexibility
- Minimal cash position (133M) relative to 7.6B liabilities leaves limited cushion for volatility or portfolio deterioration
- Negative ROE and ROA indicate poor capital deployment and investment performance
- Low insider activity suggests lack of confidence from management
Key Metrics to Watch
- Net income recovery and portfolio valuation trends in subsequent quarters
- Operating cash flow sustainability and whether it can cover debt obligations
- Changes in leverage ratio and ability to maintain asset coverage ratios
- Insider buying activity as signal of management confidence in portfolio
Financial Metrics
Revenue
N/A
Net Income
-441.0M
EPS (Diluted)
$-1.57
Free Cash Flow
245.0M
Total Assets
12.8B
Cash
133.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-8.4%
ROA
-3.4%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.38x
Debt/Assets
58.9%
Interest Coverage
N/A
Long-term Debt
7.3B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-12T07:32:51.787220 |
Data as of: 2026-03-31 |
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