This content is from: Home

Fourth-Quarter 2014 Corporate Buyback Scorecard; 1–50

Buyback
Scorecard Stock Buybacks Wrestle with an Aging BullBest & Worst CompaniesIndustry Comparisons

The table below ranks the 278 companies in the S&P 500 that bought back at least 4 percent of their shares from December 31, 2013, through December 31, 2014. 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.

How the S&P 500 Stack Up
as Stock Repurchasers 1—50 | 51—100 | 101—150 | 151—200 | 201—250 | 251—278
Company Industry Market
Capitalization
$ Total
Buyback
$ Total
Buyback
/ Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
 Average $49,204 $3,543 8.7%25.3%-5.6%18.1%
 Median $24,279 $1,744 7.3%24.5%-4.7%17.2%
1Southwest Airlines Co.Transportation28,724 1,4955.2101.22.0105.2
2Darden RestaurantsConsumer Services7,2735036.97.667.480.2
3Keurig Green MountainFood, Beverage and Tobacco21,449 1,223 5.7117.9-20.972.2
4HCA HoldingsHealthcare Equipment and Services31,819 2,250 7.155.33.961.4
5YahooSoftware and Services47,851 7,508 15.762.6-4.255.7
6The Kroger Co.Food and Staples Retailing31,548 1,892 6.054.1

0.8

55.47Delta Air LinesTransportation41,169 1,3503.3103.8-24.653.78Edwards Lifesciences Corp.Healthcare Equipment and Services13,626 798 5.915.732.953.79AppleTechnology Hardware and Equipment647,361 70,940 11.017.530.753.510Gilead Sciences Pharmaceuticals, Biotechnology and Life Sciences142,207 5,931 4.270.3-10.053.311Marriott InternationalConsumer Services22,111 2,344 10.643.95.952.412Allergan Pharmaceuticals, Biotechnology and Life Sciences63,330 1,490 2.447.42.751.413General Dynamics Corp.Capital Goods45,606 4,078 8.946.32.249.514Celgene Corp.Pharmaceuticals, Biotechnology and Life Sciences89,343 5,740 6.465.1-10.148.415McKesson Corp.Healthcare Equipment and Services48,134 1,037 2.248.5-1.246.816Lockheed Martin Corp.Capital Goods60,491 3,662 6.147.5-0.546.817CareFusion Corp.Healthcare Equipment and Services12,117 1,080 8.943.91.345.818Lam Research Corp.Semiconductors and Semiconductor Equipment12,612 8646.949.1-2.245.819AnthemHealthcare Equipment and Services33,9234,16912.347.2-1.045.720Hewlett-Packard Co.Technology Hardware and Equipment73,602 5,578 7.666.2-13.144.521Western Digital Corp.Technology Hardware and Equipment25,708 1,826 7.168.0-14.543.622SanDisk Corp.Technology Hardware and Equipment21,619 2,931 13.651.7-5.343.623Dr Pepper Snapple GroupFood, Beverage and Tobacco13,935 8005.729.211.143.624AmerisourceBergen Corp.Healthcare Equipment and Services19,717 1,2546.446.5-2.443.025Humana Healthcare Equipment and Services22,024 1,4196.441.21.242.926Northrop Grumman Corp.Capital Goods29,773 5,039 16.946.1-2.941.927Cintas Corp.Commercial and Professional Services9,176 4915.334.45.141.228Union Pacific Corp.Transportation105,918 5,4435.139.50.940.729Intel Corp.Semiconductors and Semiconductor Equipment175,462 12,939 7.433.55.240.530O'Reilly Automotive Retailing19,540 1,8009.241.2-1.039.831NikeConsumer Durables and Apparel82,834 4,366 5.341.3-1.139.832United RentalsCapital Goods10,181 7287.264.1-15.039.633Legg Mason Diversified Financials6,090 73512.146.4-4.739.634Altria Group Food, Beverage and Tobacco97,381 1,031 1.128.58.439.435Cardinal HealthHealthcare Equipment and Services26,719 1,609 6.042.2-2.638.636MylanPharmaceuticals, Biotechnology and Life Sciences21,098 1,0004.743.6-3.638.537Moody's Corp.Diversified Financials19,986 2,114 10.645.3-4.738.538CVS Health Corp.Food and Staples Retailing111,045 7,977 7.239.0-0.438.439Raytheon Co.Capital Goods33,356 1,135 3.439.2-1.237.640Robert Half InternationalCommercial and Professional Services7,935 3224.142.0-3.237.441McGraw Hill FinancialDiversified Financials24,158 1,142 4.732.43.236.742Ameriprise FinancialDiversified Financials24,404 3,160 12.948.9-8.336.543FedEx Corp.Transportation49,200 5,804 11.837.9-1.336.044V.F. Corp.Consumer Durables and Apparel32,3471,0193.136.4-0.336.045Navient Corp.Diversified Financials8,865 96710.940.2-3.036.046UnitedHealth Group Healthcare Equipment and Services97,0257,178 7.433.61.836.047Microsoft Corp.Software and Services382,881 14,4193.833.31.435.248Lowe's Cos.Retailing66,936 7,615 11.436.1-1.034.749LorillardFood, Beverage and Tobacco22,660 9404.132.01.433.850F5 NetworksTechnology Hardware and Equipment9,626 9519.915.315.933.7Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from December 2013 to December 2014. Includes the 493 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 12/31/2014. Companies included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 billion.