FS KKR Capital Corp. II (FSKR) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
FS KKR Capital Corp. II (FSKR) trades at $21.56. FS KKR Capital Corp. II is a business development company (BDC) specializing in investments in middle market private companies. Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 18, 2026Analyst Coverage for FSKR: FSKR does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FSKR against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
Not enough scored data yet to form a council read on FSKR.
How is this calculated? →FS KKR Capital Corp. II (FSKR) Financial Services Profile
FS KKR Capital Corp. II is a business development company focused on providing financing solutions to middle-market companies, primarily through senior secured loans and debt investments. With a high dividend yield, FSKR operates within the competitive asset management landscape, targeting stable income generation and capital preservation.
What Is the Investment Thesis for FSKR?
FS KKR Capital Corp. II presents an investment opportunity centered on its high dividend yield of 27.29% and focus on senior secured loans. The company's strategy of investing in floating-rate debt instruments positions it to benefit from potential increases in interest rates. However, the high P/E ratio of 261.23 indicates a premium valuation, and the relatively low profit margin of 1.5% raises concerns about profitability. Key growth catalysts include strategic deployment of capital into high-yield opportunities and effective management of its investment portfolio. Investors should closely monitor the company's ability to maintain its dividend payout and manage credit risk within its portfolio. The company's gross margin of 41.6% suggests operational efficiency in its investment activities.
Based on FMP financials and quantitative analysis
FSKR Key Highlights
Dividend Yield: A high dividend yield of 27.29% offers substantial income potential for investors.
- Investment Focus: Specializes in senior secured loans, providing a relatively secure position in the capital structure of middle-market companies.
- Sector Diversification: Investments across a wide range of sectors mitigate risk associated with industry-specific downturns.
- Floating Rate Loans: Focus on floating-rate loans positions the company to benefit from potential increases in interest rates.
- Gross Margin: A gross margin of 41.6% demonstrates operational efficiency in managing its investment portfolio.
Who Are FSKR's Competitors?
FSKR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ATCO Atlas Corp. | $15.48 | +0.00% | $4.45B | 50 |
| CS Credit Suisse Group AG | $0.89 | +0.99% | $3.50B | 48 |
| FOCS Focus Financial Partners Inc. | $52.99 | -0.02% | $3.50B | 46 |
| GRNV GreenVision Acquisition Corp. | $12.95 | -6.37% | $3.79B | 44 |
| HGTY Hagerty, Inc. | $12.94 | +0.31% | $4.44B | 51 |
| ABALX American Funds American Balanced Fund Class A | $41.00 | +0.37% | $292B | 72 |
| BX Blackstone Inc. | $141.41 | -2.54% | $171B | 81 |
| AMFCX American Funds American Mutual Fund | $63.80 | -0.72% | $77.4B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FSKR's Key Strengths?
High dividend yield attracts income-seeking investors.
- Focus on senior secured loans provides downside protection.
- Diversified investment portfolio across various sectors.
- Experienced management team with expertise in middle-market lending.
What Are FSKR's Weaknesses?
High P/E ratio indicates a premium valuation.
- Low profit margin raises concerns about profitability.
- Sensitivity to interest rate fluctuations.
- Credit risk associated with investments in middle-market companies.
What Could Drive FSKR Stock Higher?
Potential increases in interest rates could boost income from floating-rate loans.
- Strategic deployment of capital into high-yield opportunities.
- Active management of the investment portfolio to optimize returns.
- Expansion into new and emerging sectors.
What Are the Key Risks for FSKR?
Negative return on equity (-9.4%) — the business is not currently generating profit on shareholder capital.
- Economic downturn could negatively impact portfolio companies.
- Credit risk associated with investments in middle-market companies.
- Changes in regulations could affect the BDC industry.
- Rising interest rates could increase borrowing costs for portfolio companies.
What Are the Growth Opportunities for FSKR?
- Strategic Deployment of Capital: FSKR can grow by strategically deploying its capital into high-yield opportunities within the middle market. This includes identifying and investing in companies with strong growth potential and attractive risk-adjusted returns. By carefully selecting investments and actively managing its portfolio, FSKR can enhance its income generation and capital appreciation. The market for middle-market lending is estimated to be worth billions of dollars, providing ample opportunities for FSKR to expand its investment portfolio. Timeline: Ongoing.
- Expansion of Investment Sectors: While FSKR already invests in a diverse range of sectors, expanding into new and emerging sectors can provide additional growth opportunities. This includes sectors such as renewable energy, technology, and healthcare, which are experiencing rapid growth and innovation. By diversifying its investments into these sectors, FSKR can tap into new sources of income and capital appreciation. The renewable energy sector, for example, is expected to grow significantly in the coming years, driven by increasing demand for clean energy solutions. Timeline: Ongoing.
- Increased Co-Investment Opportunities: FSKR can leverage its relationships with financial sponsors and private equity firms to increase co-investment opportunities. By co-investing with these partners, FSKR can participate in larger and more complex transactions, enhancing its investment portfolio and returns. Co-investments also allow FSKR to share the risk and due diligence burden with other experienced investors. The market for co-investments is growing, driven by the increasing complexity of private equity transactions. Timeline: Ongoing.
- Enhanced Portfolio Management: FSKR can improve its portfolio management capabilities by implementing more sophisticated risk management and monitoring systems. This includes closely monitoring the performance of its portfolio companies, identifying potential risks and opportunities, and taking proactive measures to mitigate risks and capitalize on opportunities. By enhancing its portfolio management, FSKR can improve its overall investment performance and reduce the risk of losses. Timeline: Ongoing.
- Leveraging Floating Rate Investments: With a focus on floating-rate loans, FSKR is well-positioned to benefit from potential increases in interest rates. As interest rates rise, the income generated from these loans will increase, enhancing FSKR's profitability and returns. This provides a natural hedge against inflation and rising interest rate environments. The Federal Reserve's monetary policy will play a crucial role in determining the extent to which FSKR can capitalize on this opportunity. Timeline: Ongoing.
What Are FSKR's Competitive Advantages?
- Established relationships with financial sponsors and private equity firms.
- Expertise in structuring and managing investments in middle-market companies.
- Access to proprietary deal flow through its network of relationships.
- Focus on senior secured loans provides a relatively secure position in the capital structure.
What Does FSKR Do?
FS KKR Capital Corp. II, formerly known as FS Investment Corp II, was established to provide financing solutions to middle-market companies. The company operates as a business development company (BDC), focusing on generating both current income and capital appreciation. FSKR primarily invests in floating rate, senior secured loans, including first and second lien loans, senior secured bonds, subordinated debt, collateralized securities, corporate bonds, debt securities, and equity interests such as warrants or options. The company strategically avoids significant investment in start-up companies or those with speculative business plans, preferring established businesses across various sectors. FSKR targets investments in diverse sectors, including consumer services, energy, capital goods, software and services, telecommunication services, consumer durables and apparel, diversified financials, materials, automobiles and components, commercial and professional services, media, technology hardware and equipment, healthcare equipment and services, insurance, retailing, transportation, pharmaceuticals, biotechnology, life sciences, food and staples retailing, food, beverage, and tobacco, household and personal products, real estate, and utilities. Geographically, FSKR focuses on private companies based in the United States but may also invest in non-U.S. securities. The company purchases loan interests through secondary market transactions and directly from target companies, often taking minority equity interests alongside debt investments. FS KKR Capital Corp. II may also secure board representation or observation rights within its portfolio companies, allowing for greater oversight and strategic influence.
What Products and Services Does FSKR Offer?
- Invests in floating rate, senior secured loans.
- Provides financing to middle-market private companies.
- Purchases senior secured bonds and subordinated debt.
- Invests in collateralized securities and corporate bonds.
- Acquires debt securities and equity interests.
- Participates in secondary market transactions for institutional loans.
- Co-invests with financial sponsors and private equity firms.
How Does FSKR Make Money?
- Generates income through interest payments on loans and debt securities.
- Realizes capital appreciation through equity investments.
- Manages a portfolio of investments in middle-market companies.
- Purchases interests in loans through secondary market transactions and direct investments.
What Industry Does FSKR Operate In?
FS KKR Capital Corp. II operates within the asset management industry, specifically as a business development company (BDC). The BDC sector is characterized by companies that provide financing to small and middle-market businesses. The competitive landscape includes other BDCs and private credit funds. Market trends include increasing demand for private credit as traditional lending sources become more restrictive. FSKR's focus on senior secured loans positions it to capitalize on this trend, though it faces competition from firms like Ares Capital and Prospect Capital.
Who Are FSKR's Key Customers?
- Middle-market private companies seeking financing.
- Financial sponsors and private equity firms for co-investment opportunities.
- Institutional investors seeking income and capital appreciation.
Company Profile
FS KKR Capital Corp. II operates in the Asset Management industry within the Financial Services sector. It is headquartered in Philadelphia, US. The company is led by CEO Michael Craig Forman. FSKR has traded publicly since 2020.
Key Financial Metrics
Return on equity for FS KKR Capital Corp. II stands at -9.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -4.3%, showing how much profit it generates from its asset base. Its free cash flow yield is 13.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -18.7%, the inverse of the P/E and a quick read on earnings relative to price.
Insider Activity
The most recent 12 insider filings for FS KKR Capital Corp. II break down as 10 sales and 2 purchases. On net that is roughly 117K shares disposed (about $44K), a signal worth weighing alongside the fundamentals.
FSKR Financials
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that executives believe the stock is undervalued.
- Community sentiment has shifted positively, with many investors expressing optimism about the company's ability to generate consistent income.
- Market perception has improved due to favorable developments in the private equity space, which could benefit FS KKR's portfolio.
- Increased discussions around the benefits of alternative investments have led to heightened interest in firms like FS KKR, positioning it well for growth.
Bear Case
- Concerns about rising interest rates could impact the attractiveness of FS KKR's debt investments, leading to potential headwinds.
- Some community members express skepticism regarding the sustainability of the current dividend yield, fearing it may not be maintainable long-term.
- Recent market volatility has raised doubts about the stability of alternative investment firms, causing caution among investors.
- Insider selling activity in certain quarters has raised red flags for some traders, suggesting potential lack of confidence from insiders.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FSKR Latest News
No recent news available for FSKR.
FSKR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FSKR.
Price Targets
Wall Street price target analysis for FSKR.
FSKR MoonshotScore
What does this score mean?
The MoonshotScore rates FSKR 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Michael Craig Forman
Chairman and Chief Executive Officer
Michael Craig Forman serves as the Chairman and Chief Executive Officer of FS KKR Capital Corp. II. He has extensive experience in the financial services industry, particularly in the areas of investment management and private credit. Prior to his current role, Forman held various leadership positions within the FS Investments organization. His background includes a strong focus on developing and managing investment strategies for institutional and retail investors.
Track Record: Under Michael Forman's leadership, FS KKR Capital Corp. II has focused on deploying capital into senior secured loans and debt securities, aiming to generate stable income and capital appreciation. Key milestones include the integration of FS Investments and KKR's credit platform, enhancing the company's investment capabilities and market reach. Forman has overseen the company's strategic shift towards a more diversified portfolio and improved risk management practices.
FSKR Financial Services Stock FAQ
What does FS KKR Capital Corp. II do?
FS KKR Capital Corp. II is a business development company (BDC) that provides financing to middle-market companies. It primarily invests in senior secured loans, debt securities, and other credit instruments. The company aims to generate income and capital appreciation by strategically deploying capital into these investments.
What do analysts say about FSKR stock?
Analyst consensus on FS KKR Capital Corp. II (FSKR) reflects a neutral outlook, considering its high dividend yield and focus on senior secured loans. Valuation metrics, such as the high P/E ratio, suggest a premium valuation, while the relatively low profit margin warrants caution. Growth considerations include the company's ability to strategically deploy capital and manage credit risk.
What are the main risks for FSKR?
The main risks for FS KKR Capital Corp. II include credit risk associated with investments in middle-market companies, which may face financial difficulties during economic downturns. Sensitivity to interest rate fluctuations can impact the company's profitability, particularly if rates decline. Regulatory changes affecting the BDC industry could also pose a risk.
What are the key factors to evaluate for FSKR?
Evaluate FSKR on fundamentals, analyst consensus, and risk factors. FS KKR Capital Corp. II presents an investment opportunity centered on its high dividend yield of 27.29% and focus on senior secured loans. Not financial advice.
How frequently does FSKR data refresh on this page?
FSKR's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FSKR's recent stock price performance?
FS KKR Capital Corp. II (FSKR) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: High dividend yield attracts income-seeking investors. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FSKR overvalued or undervalued right now?
FS KKR Capital Corp. II (FSKR) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research FSKR before investing?
Before investing in FS KKR Capital Corp. II (FSKR), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- AI analysis is pending and may provide further insights.