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2012 Corporate Buyback Scorecard

Buyback
Scorecard
 

The table below ranks the buyback programs of the S&P 500 companies by the industries to which they belong, according to their return on investment on purchases of at least 4 percent of their shares from June 30, 2010, to June 30, 2012. As calculated by Fortuna Advisors, a New York City-based consultancy that compiled the data for Institutional Investor, buyback ROI measures the overall rate of return of buybacks, based on the internal rate of return of the cash flows associated with them. Buyback strategy tracks the performance of the underlying stock in terms of annualized total shareholder return. Once Fortuna determines buyback ROI and buyback strategy, buyback effectiveness can then be calculated as simply the difference between the two, determined as compounded return.

 
How Industries Compare as Stock Repurchasers
Industry Market
Capitalization
$ Total
Buyback
$ Total
Buyback /
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
Telecom $398,393 $5,037 1.3% 3.3% 34.2% 38.7%
Banks $357,851 $7,031 2.0% 3.2% 21.4% 25.3%
Retailing $508,986 $50,291 9.9% 82.9% -32.6% 23.4%
Real Estate $101,334 $590 0.6% 5.0% 16.5% 22.4%
Consumer Drbls $135,978 $10,196 7.5% 61.5% -25.0% 21.2%
Pharma $984,782 $62,835 6.4% 26.7% -5.1% 20.2%
Food and Bev $829,033 $41,435 5.0% 23.6% -3.0% 19.9%
Consumer Svcs $264,558 $15,986 6.0% 20.2% -0.3% 19.8%
Semiconductors $287,115 $28,337 9.9% 27.5% -6.2% 19.6%
Software and Svcs $1,311,242 $87,074 6.6% 54.0% -23.4% 18.0%
Materials $416,067 $14,443 3.5% 27.0% -7.7% 17.2%
Autos $76,307 $1,228 1.6% 26.7% -7.6% 17.0%
Media $399,153 $47,072 11.8% 90.9% -39.5% 15.4%
Food and Staples $414,205 $29,852 7.2% 19.0% -5.7% 12.2%
Insurance $330,303 $29,064 8.8% 23.2% -9.2% 11.9%
Healthcare $482,553 $46,759 9.7% 67.6% -33.6% 11.2%
Household $287,823 $18,905 6.6% 33.9% -17.3% 10.8%
Utilities $442,842 $5,657 1.3% 2.7% 7.8% 10.7%
Transportation $234,869 $14,806 6.3% 22.5% -10.5% 9.7%
Cap Goods $946,682 $43,531 4.6% 12.0% -2.8% 8.9%
Energy $1,192,665 $73,954 6.2% 24.1% -12.7% 8.3%
Comm and Prof Svcs $64,757 $5,375 8.3% 7.5% -4.6% 2.6%
Financials $1,038,511 $46,223 4.5% 1.2% -3.4% -2.3%
Tech Hardware $991,542 $49,448 5.0% -42.8% 53.5% -12.3%
S&P 500 $12,497,551 $735,130 5.9% 12.5% -0.2% 12.2%
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2010 to June 2012. Includes the 491 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 6/30/2012.

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