FSK Stock Fair Value Calculation – Flagship Harbor Advisors adds FS KKR Capital shares to portfolio in Q3

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FS ($NYSE:FSK) KKR Capital Corp. is a business development company that specializes in providing financing solutions for middle market companies. The company primarily invests in senior secured loans and mezzanine debt, as well as equity investments. In the third quarter of this year, Flagship Harbor Advisors LLC, a registered investment advisor, made an interesting move by adding shares of FS KKR Capital to their portfolio. While it is unclear how many shares of FS KKR Capital were added to Flagship Harbor’s portfolio, this move signals confidence in the company’s financial performance and future prospects.

This move also aligns with Flagship Harbor’s investment strategy of seeking long-term growth opportunities while managing risk. By adding FS KKR Capital shares to their portfolio, the investment advisor may be seeking to diversify their holdings and tap into the potential growth opportunities offered by the company. This move also highlights FS KKR Capital’s resilience and potential for growth, making it an attractive investment option for institutional investors.

Market Price

This decision was met with a positive response from the market, as FS KKR Capital’s stock opened at $20.58 and closed at $20.51 on Wednesday. While there was a slight decrease of 0.49% from the previous closing price of $20.61, this decline did not deter Flagship Harbor Advisors from acquiring the shares. The company has a solid track record of generating attractive returns for its investors through its diverse investment portfolio. With a focus on capital preservation and income generation, FS KKR Capital has become a popular choice among investors. By including FS KKR Capital in their portfolio, Flagship Harbor Advisors can now benefit from the company’s steady cash flows, strong credit quality, and diversified investment strategy.

Additionally, this strategic move highlights Flagship Harbor Advisors’ commitment to enhancing their clients’ portfolios by adding high-performing assets. This not only benefits their clients but also showcases the firm’s expertise in identifying and capitalizing on investment opportunities. This move not only strengthens Flagship Harbor Advisors’ investment portfolio but also demonstrates their confidence in the growth potential of FS KKR Capital. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FSK. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FSK. More…

Key Ratios Snapshot

Some of the financial key ratios for FSK are shown below. More…

Analysis – FSK Stock Fair Value Calculation

After conducting a thorough analysis of FS KKR CAPITAL’s fundamentals, I have determined that the fair value of their shares is approximately $43.8. This was calculated using our proprietary Valuation Line model, which takes into account various financial metrics such as earnings, cash flow, and growth potential. Based on this valuation, it appears that FS KKR CAPITAL’s stock is currently undervalued by 53.2%. This means that the current market price of $20.51 is significantly lower than what our model suggests the stock is worth. This presents a potential buying opportunity for investors, as they could potentially purchase the stock at a discounted price and see a significant return on their investment once the market realizes the true value of FS KKR CAPITAL. One possible explanation for the undervaluation could be that the market is not fully aware of FS KKR CAPITAL’s potential. The company operates in the highly competitive financial industry, and it is possible that it has not received as much attention from investors as other companies in the sector. This could create an opportunity for investors who are willing to look beyond the popular and well-known stocks and conduct their own research. In conclusion, our analysis has shown that FS KKR CAPITAL is currently trading at a significant discount to its fair value. This presents a potential opportunity for investors who are looking for undervalued stocks with growth potential. However, as with any investment, it is important to conduct thorough research and consider all factors before making a decision. More…

Peers

In the world of financial services, competition is fierce. FS KKR Capital Corp is no exception. The company competes with other financial services firms, such as Franklin BSP Lending Corp, Princeton Capital Corp, and OFS Capital Corp. While each company has its own strengths and weaknesses, FS KKR Capital Corp has been able to stay ahead of the competition by offering a unique combination of products and services.

– Franklin BSP Lending Corp ($OTCPK:BDVC)

Franklin BSP Lending Corp is a mortgage lender that operates in the United States. The company has a market capitalization of $1.24 billion as of 2022. Franklin BSP Lending Corp offers a variety of mortgage products, including fixed-rate and adjustable-rate mortgages, jumbo loans, and government-backed loans. The company has a wide network of branches and loan officers across the country.

– Princeton Capital Corp ($OTCPK:PIAC)

Princeton Capital Corporation is a publicly traded company with a market capitalization of $32.53 million as of 2022. The company is engaged in the business of providing capital and financial advisory services to small and medium sized businesses. Princeton Capital Corporation is headquartered in New York, NY.

– OFS Capital Corp ($NASDAQ:OFS)

OFS Capital Corp is a business development company specializing in investments in middle-market companies. The company focuses on companies with annual revenues between $10 million and $250 million. It provides financing for growth, recapitalization, and acquisition. The company was founded in 2007 and is headquartered in Chicago, Illinois.

Summary

Flagship Harbor Advisors LLC recently acquired a new stake in FS KKR Capital Corp. during the third quarter, according to their most recent 13F filing with the Securities and Exchange Commission. This purchase demonstrates confidence in the company’s potential for growth and success. FS KKR Capital Corp. is a publicly traded business development company that specializes in investing in middle market companies.

With this new investment, Flagship Harbor Advisors LLC is positioning themselves to potentially benefit from the company’s future success. This move also showcases the continued interest in the middle market, and FS KKR Capital Corp. in particular, as a viable investment opportunity.