Buyback
Scorecard
Stock Buybacks Prepare for the Bear Market
The S&P 500 as Stock Repurchasers
Best & Worst Companies
The table below ranks the 284 companies in the S&P 500 that bought back at least 4 percent of their shares from June 30, 2013, through June 30, 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.
How Industries Compare as Stock Repurchasers
Industry Market
Cap ($ Millions) Total
Buyback (S Millions) $ Total
Buyback as %
Market Cap Buyback
Strategy Buyback
Effectiveness Buyback ROI Healthcare Equipment and Services 989,857 58,443 5.9 30.6 1.7 32.8 Technology Hardware and Equipment 1,238,422 143,873 11.6 30.5 -1.7 28.3 Food and Staples Retailing 568,878 20,373 3.6 26.1 1.1 27.6 Retailing 948,102 56,904 6.0 22.9 2.9 26.4 Real Estate 472,327 2,517 0.5 12.4 9.8 23.3 Semiconductors and Semiconductor Equipment 431,756 28,078 6.5 24.3 -4.5 18.7 Consumer Services 356,266 16,976 4.8 17.4 1.1 18.6 Pharmaceuticals, Biotechnology and Life Sciences 1,820,868 70,125 3.9 22.2 -4.8 16.3 Transportation 396,593 28,379 7.2 27.8 -9.3 15.9 Software and Services 2,165,985 124,560 5.8 15.9 -1.6 14.0 Materials 593,189 40,706 6.9 17.8 -3.3 14.0 Insurance 504,957 47,040 9.3 17.0 -2.6 13.9 Diversified Financials 762,182 52,590 6.9 18.7 -4.1 13.8 Banks 1,153,745 47,877 4.1 17.6 -3.6 13.4 Consumer Durables and Apparel 303,869 14,103 4.6 16.1 -2.7 13.0 Media 655,503 58,934 9.0 17.8 -4.2 12.9 Capital Goods 1,372,209 96,275 7.0 20.4 -7.2 11.6 Food, Beverage and Tobacco 981,971 44,985 4.6 11.0 -1.4 9.4 Commercial and Professional Services 122,122 9,060 7.4 15.0 -5.5 8.7 Automobiles and Components 202,385 15,738 7.8 14.2 -5.2 8.3 Telecommunication Services 415,495 12,148 2.9 2.1 3.7 5.9 Household and Personal Products 356,453 18,462 5.2 7.2 -2.4 4.6 Utilities 517,881 3,479 0.7 6.9 -5.2 1.3 Energy 1,455,533 73,758 5.1 3.3 -6.3 -3.2 S&P 500 18,786,549 1,085,382 5.8 19.5 -3.0 16.0 Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2013 to June 2015. Includes the 488 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/30/2015. Companies included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 billion.