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

Buyback
Scorecard Stock Buybacks Wrestle with an Aging BullThe S&P 500 as Stock Repurchasers Industry 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.

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 Southwest Airlines Co.Transportation28,724 1,495 5.2 101.2 2.0 105.2
2 Darden RestaurantsConsumer Services7,273 503 6.97.667.480.2
3 Keurig Green MountainFood, Beverage and Tobacco21,449 1,223 5.7117.9-20.972.2
4 HCA HoldingsHealthcare Equipment and Services31,819 2,2507.155.3 3.961.4
5 YahooSoftware and Services47,851 7,508 15.762.6-4.255.7
6 The Kroger Co.Food and Staples Retailing31,548 1,892 6.054.10.855.4
7 Delta Air LinesTransportation41,169 1,350 3.3103.8-24.653.7
8 Edwards Lifesciences Corp.Healthcare Equipment and Services13,626 7985.915.732.953.7
9 Apple Technology Hardware and Equipment647,361 70,940 11.017.5 30.753.5
10 Gilead Sciences Pharmaceuticals, Biotechnology and Life Sciences142,207 5,931 4.270.3-10.053.3
Worst
Company Industry Market
Cap ($ Millions)
Total
Buyback (S Millions)
$ Total
Buyback as %
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
1 Nabors Industries Ltd.Energy3,757 250 6.76.6-88.1 -87.3
2 Whole Foods MarketEnergy2,834 49317.4-18.2-22.6-36.7
3 CoachConsumer Durables and Apparel10,351 5255.1-18.8-15.5-31.4
4 Apache Corp.Energy23,594 2,861 12.1-5.0-22.9-26.7
5 MattelConsumer Durables and Apparel10,485 6706.4-4.7-17.8-21.7
6 Fluor Corp.Capital Goods9,472 97510.37.7-27.1-21.4
7 Ford Motor Co.Automobiles and Components59,655 2,177 3.619.1-33.8-21.1
8 Discovery CommunicationsMedia22,9002,72711.97.6-20.9-14.9
9 Urban Outfitters Retailing4,625 50010.8-6.8-8.6 -14.8
10 The ADT Corp.Commercial and Professional Services6,323 2,698 42.7-7.9-5.7-13.2
Source: 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.