FS Credit Opportunities Corp. (FSCO)
Valuation Overview•Is FS Credit Opportunities Corp. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 74/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
FSCO demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($114M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | — | — | -18.6% | — | — | — |
| EBITDA | — | — | — | — | — | — |
| Net Income | — | — | -20.4% | — | — | — |
| EPS (Diluted) | — | — | -20.0% | — | — | — |
| Free Cash Flow | — | — | +663.4% | +26.1% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | — | 82.1% | 95.6% | 95.6% |
| Operating Margin | — | 77.5% | 96.5% | 96.5% |
| Net Margin | — | 75.3% | 95.9% | 95.9% |
| FCF Margin | — | 106.2% | 15.0% | 15.0% |
Total return is -20.8% (1Y), lagging the benchmark by -45.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -17.5% | -26.8% | — |
| 1Y | -20.8% | -45.8% | +10.9% |
| 3YCAGR | +15.1% | -4.2% | +47.3% |
| 5YCAGR | +10.8% | -1.6% | +57.0% |
| 10YCAGR | +5.3% | -8.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about FS Credit Opportunities Corp. (FSCO) valuation, health, and returns.
Based on peer relative multiples, FS Credit Opportunities Corp. appears Limited: Fair versus peers compared to industry peers.
FS Credit Opportunities Corp. has multiple valuation anchors: Peer Relative Fair Value: $4.70. A convergence of these signals offers higher conviction.
FS Credit Opportunities Corp. displays good financial health with a composite quality score of 74/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.4%.
FS Credit Opportunities Corp. pays a 16.2% dividend yield, covered by a 105% payout ratio with 4 years of growth, supplemented by a 20.1% buyback yield.
FS Credit Opportunities Corp.'s current growth trajectory is Stable. The company achieved -18.6% 1Y revenue growth and -20.0% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for FS Credit Opportunities Corp. include: -40.0% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.66x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.