FS Credit OpportunitiesFSCO +1.90%44 ROE % is 5.95% as of Dec. 2025, which is 50% below its 10-year median of 11.98. GuruFocus rates FSCO with a GF Score™ of 44/100 and a GF Value™ of $5.33 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,612 Asset Management companies, FS Credit Opportunities ranks better than 64.64% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, FS Credit Opportunities's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FS Credit Opportunities ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, FS Credit Opportunities's ROE % distribution charts can be found below:
* The bar in red indicates where FS Credit Opportunities's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
FS Credit Opportunities (FSCO) has a ROE % of 5.95% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FS Credit Opportunities and its competitors. This is 50% below median its historical median of 11.98. According to the industry distribution chart, FS Credit Opportunities ranks #570 out of 1612 companies in the Asset Management industry, placing it in the top 35.4%.
Is FS Credit Opportunities' ROE % too high?
FS Credit Opportunities' current ROE % of 5.95% is 50% below median its 10-year median of 11.98. The Asset Management industry median ROE % is 6.40. FS Credit Opportunities' value of 5.95% is 7% below this industry median. Based on the distribution chart, FS Credit Opportunities ranks #570 out of 1612 companies in the Asset Management industry, which is above the industry midpoint. Overall, FS Credit Opportunities has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FS Credit Opportunities' ROE % compare to MUC and BUR?
According to the Asset Management industry distribution chart, FS Credit Opportunities ranks #570 out of 1612 companies for ROE %. This puts FS Credit Opportunities in the upper half of its industry. The industry median ROE % is 6.40. FS Credit Opportunities' value of 5.95% is 7% below this benchmark. While the company's 10-year median is 11.98 vs. the industry median of 6.40, FS Credit Opportunities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.40, based on 1,612 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FS Credit Opportunities's current ROE % of 5.95% is 7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FS Credit Opportunities and its competitors. For the Asset Management industry, the median ROE % is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FS Credit Opportunities's current ROE % is 5.95%, which is 50% below median its own 10-year median of 11.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FS Credit Opportunities stock overvalued right now?
Based on GuruFocus' analysis, FS Credit Opportunities (FSCO) is currently considered Fairly Valued. The stock's GF Value™ is $5.33, compared to a current price of $4.83 — trading 9.4% below its estimated fair value. The current ROE % is 5.95%, which is 50% below median its 10-year median of 11.98 and 7% below the Asset Management industry median of 6.40. FS Credit Opportunities' overall GF Score™ is 44/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For FS Credit Opportunities (FSCO), the current ROE % is 5.95% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FS Credit Opportunities (FSCO) Overvalued in 2026?
Based on GuruFocus' analysis, FS Credit Opportunities stock appears to be undervalued.
The current stock price of $4.83 is trading 9.4% below its estimated GF Value™ of $5.33.
GuruFocus considers FS Credit Opportunities to be Fairly Valued.
Key valuation signals for FSCO:
ROE %: 5.95% (50% below median its 10-year median of 11.98)
GF Value™: $5.33 vs. price of $4.83 (9.4% below fair value)
Industry Position: 7% below the Asset Management median (#570 of 1612)
No single metric tells the full story. See the FSCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FS Credit Opportunities Corp is a closed-end management investment company. The Fund's primary investment objective is to generate an attractive total return consisting of a high level of current income and capital appreciation, with a secondary objective of capital preservation. It predominantly invests in a portfolio of secured and unsecured floating and fixed-rate loans, bonds, and other types of credit instruments. The credit instruments in which it invests are typically rated below investment grade by rating agencies or would be rated below investment grade if rated. To achieve its investment objectives, the fund focuses on strategies such as Opportunistic Credit, Special Situations, and Capital Structure Solutions.
44GF Score
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