Stock Price & Analysis

Based on the provided data, FSK is currently trading at $22.23 with a positive market sentiment. The stock has shown resilience with a +0.45% gain in the regular market session.

Technical Analysis

The stock is showing bullish momentum with RSI at 67.11, indicating strong but not yet overbought conditions. The MACD is positive at 0.21, suggesting upward momentum. The stock is trading above its 20-day moving average of $21.64, confirming the bullish trend.

Recent Developments

• FSK recently completed a $100 million issuance of 6.125% unsecured notes due 2030, increasing its total to $700 million. This strengthens its financial flexibility and balance sheet position.

Analyst Sentiment

Recent analyst actions show mixed sentiment:

• B. Riley Securities downgraded from Strong Buy to Hold with $22 target (Dec 11, 2024)
• Wells Fargo downgraded from Buy to Hold with $21 target (Dec 2, 2024)
• RBC Capital maintained Hold rating with $21 target (Nov 18, 2024)

The average analyst price target is around $21.10, suggesting limited upside from current levels.

Conclusion

Based on technical indicators and recent developments, FSK appears to be trading near fair value with limited immediate upside potential, suggesting a HOLD recommendation at current price levels.

Based on the provided data and market analysis, here is the price prediction for FSK stock in 2025:

FSK is expected to reach $24.50-25.00 by end of 2025, driven by its strong portfolio performance with non-accruals dropping to 1.7% and continued robust dividend yield above 13%. The company's recent successful $100 million note offering and enhanced financial flexibility through debt optimization supports this positive outlook. Technical indicators showing RSI at 67.11 and positive MACD of 0.21 suggest continued upward momentum from current $22.26 level.

The S1 support level for FSK Stock is $21.3 ,The R1 resistant level for FSK Stock is $22.55.

As of the end of day on 2025-01-24, the price of FSK Stock was $22.65.

The target price for FSK Stock according to analyst rating is 20.50, with the highest price target at 21.50 and the lowest at 19.50. Analysts have a Hold rating on FSK Stock overall.

The market cap of FSK is $6.3B.

Based on the provided data and recent market developments, I'll analyze whether FSK is overvalued.

Valuation Analysis FSK currently trades at compelling valuation metrics with a P/E of 10.46x, P/B of 0.83x, and EV/EBITDA of 12.96x as of Q3 2024 . The stock trades at approximately 13% discount to its NAV of $23.82, suggesting it remains undervalued relative to its intrinsic value.

Portfolio Quality FSK's portfolio quality has significantly improved with non-accruals at only 1.7% on fair value basis, which is below industry average and shows a 10 basis point improvement from previous quarter. The majority (88%) of FSK's portfolio maintains extremely low non-accruals of just 0.5%.

Income Generation The company maintains a healthy dividend coverage ratio of 106% based on Q3 2024 adjusted NII of $0.74 per share versus $0.70 quarterly dividend. While there may be some pressure on NII due to interest rate cuts, the base dividend of $0.64 quarterly remains well-covered with a 115% coverage ratio.

Market Position & Growth FSK demonstrated strong origination activity with over $1.1 billion in new investments in Q3 2024, resulting in net portfolio growth of $185 million. The company maintains conservative leverage at 1.09x, below sector average of 1.16x, providing additional growth capacity.

Conclusion FSK is not overvalued based on multiple metrics: significant NAV discount, improving portfolio quality, strong dividend coverage, and conservative leverage profile. The current valuation appears attractive given the company's fundamental strengths and market position.

FS KKR Capital Corp. is an externally managed, non-diversified, closed-end management investment company, which regulates as a business development company (BDC). It is focused on providing customized credit solutions to private middle market United States companies. Its investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. Its portfolio is composed primarily of investments in senior secured loans and second lien secured loans of private middle market United States companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private United States companies. In addition, a portion of its portfolio may be comprised of corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps. It invests in sectors, such as financial services, commercial and professional services, among others. It is managed by FS/KKR Advisor, LLC.

Based on the provided data and market analysis, here is the price prediction for FSK stock by 2030:

FSK stock is projected to reach $35-38 per share by 2030, driven by its strong business development company (BDC) model and consistent dividend yield above 13% [4,5]. The company's strategic expansion in private credit markets and improved portfolio quality with non-accruals dropping to 1.7% supports this bullish outlook. Recent successful note offerings and robust liquidity position of $4.4 billion [3,9] provide additional confidence in FSK's long-term growth trajectory.