Second-Quarter 2014 Corporate Buyback Scorecard; Best & Worst Companies

The table below shows the 10 most and least effective stock buyback programs among the companies in the S&P 500 that bought back at least 4 percent or $1 billion of their shares from June 30, 2012 through June 30, 2014, according to their return on investment.

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The table below shows the 10 most and least effective stock buyback programs among the companies in the S&P 500 that bought back at least 4 percent or $1 billion of their shares from June 30, 2012 through June 30, 2014, according to their return on investment. 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 these companies’ 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.

The Best and Worst Corporate
Stock Buyback Programs

Best
Company Industry Market
Cap ($ Millions)
Total
Buyback (S Millions)
$ Total
Buyback as %
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
1 Keurig Green MountainFood, Beverage and Tobacco20,279 1,262 6.2 88.3 15.2 117.0
2 Southwest Airlines Co.Transportation18,5831,220 6.6 73.5 10.5 91.6
3 SanDisk Corp.Technology Hardware and Equipment23,6232,037 8.6 57.8 9.9 73.5
4 Tyson FoodsFood, Beverage and Tobacco13,1859557.2 47.9 11.1 64.4
5 Western Digital Corp.Technology Hardware and Equipment21,6971,658 7.6 59.8 2.5 63.9
6 Hewlett-Packard Co.Technology Hardware and Equipment63,0273,6345.8 24.0 32.1 63.7
7 LyondellBasell IndustriesMaterials51,4902,169 4.2 62.6 -0.9 61.2
8 Gilead SciencesPharmaceuticals, Biotechnology and Life Sciences127,323 2,638 2.1 76.7 -9.6 59.7
9 Boston Scientific Corp.Healthcare Equipment and Services16,8919755.8 48.6 6.5 58.3
10 Delphi AutomotiveAutomobiles and Components20,8741,0685.153.8 1.355.7
Worst
Company Industry Market
Cap ($ Millions)
Total
Buyback (S Millions)
$ Total
Buyback as %
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
1 Whole Foods MarketFood and Staples Retailing14,199603 4.2 1.4 -21.7 -20.5
2 CoachConsumer Durables and Apparel9,374925 9.9 -18.7 -1.9 -20.3
3 Teradata Corp.Software and Services6,34080612.7 -20.70.9 -20.1
4 Urban OutfittersRetailing4,664 364 7.8 11.9 -23.9 -14.8
5 Intuitive SurgicalHealthcare Equipment and Services15,815 2,332 14.7-14.7 4.9 -10.6
6 Navient Corp.Diversified Financials7,487720 9.6 15.9 -21.3 -8.8
7 Ralph Lauren Corp.Consumer Durables and Apparel14,208 970 6.8 0.2 -8.2 -8.0
8 PetSmartRetailing5,933829 14.0 3.0 -10.4 -7.8
9 MattelConsumer Durables and Apparel13,221 653 4.9 13.6 -18.7 -7.6
10 Citrix SystemsSoftware and Services10,2502,058 20.1 -12.2 5.5 -7.4
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2012 to June 2014. Includes the 490 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/01/2014. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion.
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