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First-Quarter 2015 Corporate Buyback Scorecard; Best & Worst Companies

Buyback
Scorecard As Stocks Edge Higher, Buyback Programs Get RiskierThe S&P 500 as Stock Repurchasers Industry Comparisons

The table below ranks the 276 companies in the S&P 500 that bought back at least 4 percent of their shares from March 31, 2013, through March 31, 2015. 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.Transportation29,947 1,6955.7 94.74.6103.5
2 Darden RestaurantsConsumer Services8,722 503 5.820.851.382.7
3 The Kroger Co.Food and Staples Retailing37,257 1,746 4.760.07.071.1
4 Edwards Lifesciences Corp.Healthcare Equipment and Services15,318 7915.223.731.162.1
5 AmerisourceBergen Corp.Healthcare Equipment and Services24,963 1,270 5.148.64.655.5
6 AppleTechnology Hardware and Equipment724,773 77,910 10.737.711.653.7
7 AnthemHealthcare Equipment and Services41,1954,603 11.252.40.152.5
8 HumanaHealthcare Equipment and Services26,637 1,391 5.250.31.352.3
9 Delta Air Lines Transportation37,059 1,775 4.879.3-15.351.9
10 BiogenPharmaceuticals, Biotechnology and Life Sciences99,063 1,246 1.356.2-3.051.5
Worst
Company Industry Market
Cap ($ Millions)
Total
Buyback (S Millions)
$ Total
Buyback as %
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
1 National Oilwell VarcoEnergy20,493 2,109 10.3-5.4-60.1 -62.2
2 Noble Corp.Energy3,455 2577.4-26.9-34.1-51.8
3 FMC TechnologiesEnergy8,566 3684.3-10.4-27.9-35.4
4 Jacobs Engineering GroupCapital Goods5,794 3335.7-7.0-27.0-32.1
5 Apache Corp.Energy22,734 2,861 12.6-9.7-22.5-30.0
6 Fluor Corp.Capital Goods8,427 $1,087 12.9-4.4-23.7-27.0
7 MattelConsumer Durables and Apparel7,729 6388.3-15.0-14.0-26.9
8 Cameron International Corp.Energy8,702 3,125 35.9-14.7-9.9-23.1
9 Discovery CommunicationsMedia20,194 3,044 15.1-6.6-14.1 -19.8
10 Marathon Oil Corp.Energy17,629 1,5008.57-8.1-12.4-19.5
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from March 2013 to March 2015. Includes the 492 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 03/31/2015. Companies included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 billion.