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First-Quarter 2016 Corporate Buyback Scorecard; Best & Worst Companies

Buyback Scorecard Have Stock Buybacks Lost Their Credibility?The S&P 500 as Stock Repurchasers Industry Comparisons

The table below ranks the 305 companies in the S&P 500 that bought back at least 4 percent or more than $1 billion of their shares from March 31, 2014 to March 31, 2016. The companies are ranked according to their return on investment from these repurchases. 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.

 The Best and Worst Corporate
Stock Buyback ProgramsBest
 CompanyIndustryMarket Capitalization$ Total Buyback$ Total Buyback / Market CapBuyback StrategyBuyback EffectivenessBuyback ROI
1Tyson FoodsFood, Beverage and Tobacco$26,034$1,3415.2%27.2%35.4%72.2%
2NVIDIA Corp.Semiconductors and Semiconductor Equipment$19,311$1,4017.3%35.8%7.0%45.3%
3NasdaqDiversified Financials$10,879$5845.4%28.2%7.1%37.4%
4Darden RestaurantsConsumer Services$8,502$6437.6%23.5%9.7%35.5%
5Global PaymentsSoftware and Services$8,446$6717.9%31.4%2.3%34.4%
6VeriSignSoftware and Services$9,692$1,55316.0%20.2%10.2%32.4%
7O'Reilly AutomotiveRetailing$26,553$2,2938.6%33.8%(1.1%)32.2%
8Dr Pepper Snapple GroupFood, Beverage and Tobacco$16,738$9505.7%38.1%(6.0%)29.8%
9Northrop Grumman Corp.Capital Goods$35,809$5,56215.5%28.8%0.5%29.4%
10McDonald's Corp.Consumer Services$113,314$13,17011.6%15.6%11.3%28.7%

 CompanyIndustryMarket Capitalization$ Total Buyback$ Total Buyback / Market CapBuyback StrategyBuyback EffectivenessBuyback ROI
1Micron TechnologySemiconductors and Semiconductor Equipment$10,862$1,0349.5%(31.4%)(42.9%)(60.8%)
2Murphy Oil Corp.Energy$4,338$3758.6%(40.2%)(30.1%)(58.2%)
3NRG EnergyUtilities$4,110$47611.6%(35.1%)(34.9%)(57.8%)
4Marathon Oil Corp.Energy$9,399$4494.8%(45.9%)(13.3%)(53.1%)
5E*TRADE Financial Corp.Diversified Financials$6,844$3515.1%5.1%(52.1%)(49.6%)
6Seagate TechnologyTechnology Hardware and Equipment$10,212$2,20321.6%(19.1%)(32.2%)(45.1%)
7Navient Corp.Diversified Financials$4,104$1,48036.1%(14.9%)(33.7%)(43.6%)
8FMC TechnologiesEnergy$6,208$4196.7%(29.4%)(20.0%)(43.5%)
9BorgWarnerAutomobiles and Components$8,379$5977.1%(23.0%)(26.7%)(43.5%)
10National Oilwell VarcoEnergy$11,687$3,00025.7%(30.9%)(18.2%)(43.5%)

Top Manufacturers of EPS (*)
 CompanyIndustryMarket Capitalization$ Total Buyback$ Total Buyback / Market CapBuyback StrategyBuyback EffectivenessBuyback ROI
1Bed Bath & BeyondRetailing$8,120$3,35141.3%(16.8%)(11.7%)(26.6%)
2Navient Corp.Diversified Financials$4,104$1,48036.1%(14.9%)(33.7%)(43.6%)
3Juniper NetworksTechnology Hardware and Equipment$9,760$2,59426.6%(0.9%)7.3%6.4%
4Harley-DavidsonAutomobiles and Components$9,416$2,21523.5%(17.1%) (14.6%)(29.1%)
5Northrop Grumman Corp.Capital Goods$35,809$5,56215.5%28.8%0.5%29.4%
6Illinois Tool WorksCapital Goods$36,966$3,92310.6%9.3%(6.4%)2.4%
7Ameriprise FinancialDiversified Financials$15,823$3,34221.1%(7.6%)(19.9%)(26.0%)
8Whole Foods MarketFood and Staples Retailing$10,099$1,70816.9%(22.4%)6.7%(17.2%)
9Discover Financial ServicesDiversified Financials$21,091$3,33715.8%(5.5%)(13.1%)(17.9%)
10McDonald's Corp.Consumer Services$113,314$13,17011.6%15.6%11.3%28.7%
* Manufacturers of EPS considers S&P threshold companies with low (negative) Earnings Growth but high reduction in share count to generate positive EPS Growth.

** EPS calculation = Quarterly Reported Net Income / Actual Quarter's Reported Total Shares Outstanding.

Source: Fortuna Advisors Analysis using data from the Capital IQ database.

Financial Data from March 2014 to March 2016. Includes the 486 members of the current S&P 500 that were public for the full period.

Market Capitalization as of: 3/31/2016.

Companies Included here if $ Total Buyback / Market Capitalization is greater than 4%