Peeling Back The Layers: Exploring FS KKR Capital Through Analyst Insights
Across the recent three months, 7 analysts have shared their insights on FS KKR Capital (NYSE:FSK), expressing a variety of opinions spanning from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 6 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 4 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $19.71, along with a high estimate of $21.00 and a low estimate of $18.00. Highlighting a 3.85% decrease, the current average has fallen from the previous average price target of $20.50.
Investigating Analyst Ratings: An Elaborate Study
An in-depth analysis of recent analyst actions unveils how financial experts perceive FS KKR Capital. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Bryce Rowe | B. Riley Securities | Raises | Buy | $21.00 | $20.00 |
| Ryan Lynch | Keefe, Bruyette & Woods | Lowers | Market Perform | $20.00 | $22.00 |
| Melissa Wedel | JP Morgan | Raises | Neutral | $19.00 | $18.00 |
| Kenneth Lee | RBC Capital | Lowers | Sector Perform | $20.00 | $21.00 |
| Mark Hughes | Truist Securities | Lowers | Hold | $20.00 | $22.00 |
| Richard Shane | JP Morgan | Lowers | Neutral | $18.00 | $20.00 |
| Erik Zwick | Hovde Group | Announces | Market Perform | $20.00 | - |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to FS KKR Capital. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of FS KKR Capital compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for FS KKR Capital's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into FS KKR Capital's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on FS KKR Capital analyst ratings.
Delving into FS KKR Capital's Background
FS KKR Capital Corp is a business development company based in the United States. Its portfolio is comprised of investments in senior secured loans and second lien secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. It is focused on providing customized credit solutions to private upper middle-market companies, which it generally defines as companies with annual EBITDA of at least $50 million at the time of investment.
FS KKR Capital's Financial Performance
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: FS KKR Capital displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 46.88%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: FS KKR Capital's net margin excels beyond industry benchmarks, reaching 63.83%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.3%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): FS KKR Capital's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.58%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.2, caution is advised due to increased financial risk.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.