FS KKR CAPITAL CORP (FSK) Stock Fundamental Analysis
NYSE:FSK - New York Stock Exchange, Inc. - US3026352068 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to FSK. FSK was compared to 230 industry peers in the Capital Markets industry. Both the profitability and the financial health of FSK get a neutral evaluation. Nothing too spectacular is happening here. FSK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FSK was profitable.
In the past year FSK had a positive cash flow from operations.
FSK had positive earnings in 4 of the past 5 years.
FSK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of FSK (4.11%) is comparable to the rest of the industry.
The Return On Equity of FSK (8.83%) is comparable to the rest of the industry.
The Return On Invested Capital of FSK (4.73%) is better than 65.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSK is below the industry average of 7.27%.
The last Return On Invested Capital (4.73%) for FSK is above the 3 year average (4.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.83% | ||
| ROIC | 4.73% |
ROA(3y)3.06%
ROA(5y)2.48%
ROE(3y)6.77%
ROE(5y)5.37%
ROIC(3y)4.66%
ROIC(5y)4.11%
1.3 Margins
FSK has a Profit Margin of 33.99%. This is in the better half of the industry: FSK outperforms 76.09% of its industry peers.
FSK's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 48.58%, FSK belongs to the best of the industry, outperforming 85.65% of the companies in the same industry.
In the last couple of years the Operating Margin of FSK has declined.
FSK has a Gross Margin of 50.73%. This is comparable to the rest of the industry: FSK outperforms 58.26% of its industry peers.
In the last couple of years the Gross Margin of FSK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.58% | ||
| PM (TTM) | 33.99% | ||
| GM | 50.73% |
OM growth 3Y-4.13%
OM growth 5Y-1.92%
PM growth 3Y-37.64%
PM growth 5Y1.48%
GM growth 3Y-2.96%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
Compared to 1 year ago, FSK has about the same amount of shares outstanding.
FSK has more shares outstanding than it did 5 years ago.
FSK has a better debt/assets ratio than last year.
2.2 Solvency
FSK has an Altman-Z score of 0.55. This is a bad value and indicates that FSK is not financially healthy and even has some risk of bankruptcy.
FSK's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. FSK is outperformed by 62.17% of its industry peers.
FSK has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as FSK would need 3.87 years to pay back of all of its debts.
FSK has a Debt to FCF ratio of 3.87. This is in the better half of the industry: FSK outperforms 71.30% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that FSK has dependencies on debt financing.
FSK's Debt to Equity ratio of 1.11 is in line compared to the rest of the industry. FSK outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 0.55 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.78 indicates that FSK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, FSK belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
FSK has a Quick Ratio of 2.78. This indicates that FSK is financially healthy and has no problem in meeting its short term obligations.
FSK has a Quick ratio of 2.78. This is amongst the best in the industry. FSK outperforms 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
The earnings per share for FSK have decreased by -8.50% in the last year.
The Earnings Per Share has been decreasing by -2.09% on average over the past years.
Looking at the last year, FSK shows a decrease in Revenue. The Revenue has decreased by -5.96% in the last year.
The Revenue has been growing by 17.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.5%
EPS 3Y1.43%
EPS 5Y-2.09%
EPS Q2Q%-10.96%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y16.77%
Revenue growth 5Y17.18%
Sales Q2Q%-7.83%
3.2 Future
FSK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.56% yearly.
Based on estimates for the next years, FSK will show a decrease in Revenue. The Revenue will decrease by -5.72% on average per year.
EPS Next Y-11.19%
EPS Next 2Y-7.54%
EPS Next 3Y-8.56%
EPS Next 5YN/A
Revenue Next Year-7.89%
Revenue Next 2Y-5.05%
Revenue Next 3Y-5.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.48, the valuation of FSK can be described as very cheap.
Based on the Price/Earnings ratio, FSK is valued cheaply inside the industry as 86.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FSK to the average of the S&P500 Index (25.82), we can say FSK is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.50, the valuation of FSK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FSK is valued cheaper than 80.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FSK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FSK is valued cheaply inside the industry as 87.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.08 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as FSK's earnings are expected to decrease with -8.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.54%
EPS Next 3Y-8.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.27%, FSK is a good candidate for dividend investing.
FSK's Dividend Yield is a higher than the industry average which is at 8.15.
FSK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.27% |
5.2 History
On average, the dividend of FSK grows each year by 6.47%, which is quite nice.
FSK has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FSK decreased in the last 3 years.
Dividend Growth(5Y)6.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
172.31% of the earnings are spent on dividend by FSK. This is not a sustainable payout ratio.
The Dividend Rate of FSK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP172.31%
EPS Next 2Y-7.54%
EPS Next 3Y-8.56%
20.93
+0.1 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners29.66%
Inst Owner Change-1.49%
Ins Owners0.23%
Ins Owner Change-13.6%
Market Cap5.86B
Analysts54.12
Price Target21.64 (3.39%)
Short Float %2.39%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.27% |
Yearly Dividend3.6
Dividend Growth(5Y)6.47%
DP172.31%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.02%
Min EPS beat(2)-2.07%
Max EPS beat(2)4.12%
EPS beat(4)3
Avg EPS beat(4)2.09%
Min EPS beat(4)-2.07%
Max EPS beat(4)5.03%
EPS beat(8)6
Avg EPS beat(8)2.09%
EPS beat(12)8
Avg EPS beat(12)2.92%
EPS beat(16)12
Avg EPS beat(16)4.99%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)3.02%
Revenue beat(4)3
Avg Revenue beat(4)0.31%
Min Revenue beat(4)-3.91%
Max Revenue beat(4)3.02%
Revenue beat(8)6
Avg Revenue beat(8)0.63%
Revenue beat(12)10
Avg Revenue beat(12)1.62%
Revenue beat(16)14
Avg Revenue beat(16)3.7%
PT rev (1m)-2.3%
PT rev (3m)-0.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 8.5 | ||
| P/S | 3.41 | ||
| P/FCF | 3.08 | ||
| P/OCF | 3.08 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.8
EY13.38%
EPS(NY)2.46
Fwd EY11.76%
FCF(TTM)6.79
FCFY32.43%
OCF(TTM)6.79
OCFY32.43%
SpS6.14
BVpS23.64
TBVpS23.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.11% | ||
| ROE | 8.83% | ||
| ROCE | 5.98% | ||
| ROIC | 4.73% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 4.82% | ||
| OM | 48.58% | ||
| PM (TTM) | 33.99% | ||
| GM | 50.73% | ||
| FCFM | 110.46% |
ROA(3y)3.06%
ROA(5y)2.48%
ROE(3y)6.77%
ROE(5y)5.37%
ROIC(3y)4.66%
ROIC(5y)4.11%
ROICexc(3y)4.74%
ROICexc(5y)4.19%
ROICexgc(3y)4.74%
ROICexgc(5y)4.19%
ROCE(3y)5.9%
ROCE(5y)5.21%
ROICexcg growth 3Y19.37%
ROICexcg growth 5Y3.07%
ROICexc growth 3Y19.39%
ROICexc growth 5Y3.07%
OM growth 3Y-4.13%
OM growth 5Y-1.92%
PM growth 3Y-37.64%
PM growth 5Y1.48%
GM growth 3Y-2.96%
GM growth 5Y-1.99%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 324.96% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 0.55 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)575.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.5%
EPS 3Y1.43%
EPS 5Y-2.09%
EPS Q2Q%-10.96%
EPS Next Y-11.19%
EPS Next 2Y-7.54%
EPS Next 3Y-8.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y16.77%
Revenue growth 5Y17.18%
Sales Q2Q%-7.83%
Revenue Next Year-7.89%
Revenue Next 2Y-5.05%
Revenue Next 3Y-5.72%
Revenue Next 5YN/A
EBIT growth 1Y-8.53%
EBIT growth 3Y11.94%
EBIT growth 5Y14.92%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.36%
OCF growth 3YN/A
OCF growth 5YN/A