Buyback Scorecard The Most and Least Effective Stock Buyback Programs |
The table below ranks industries by the weighted average buyback ROI of their S&P 500 constituents from June 30, 2011 through June 30, 2013. 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 |
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Industry |
Market Capitalization |
$ Total Buyback |
$ Total Buyback / Market Cap |
Buyback Strategy |
Buyback Effectiveness |
Buyback ROI |
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Automobiles and Components |
$157,136 |
$6,914 |
4.4% |
3.6% |
39.2% |
44.2% |
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Pharmaceuticals, Biotechnology and Life Sciences |
$1,152,622 |
$83,444 |
7.2% |
25.4% |
13.0% |
41.7% |
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Media |
$556,594 |
$52,358 |
9.4% |
24.3% |
12.6% |
39.9% |
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Insurance |
$431,290 |
$34,136 |
7.9% |
17.2% |
15.2% |
35.0% |
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Diversified Financials |
$1,081,446 |
$53,161 |
4.9% |
14.0% |
17.0% |
33.4% |
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Real Estate |
$298,839 |
$1,019 |
0.3% |
17.4% |
13.3% |
33.0% |
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Retailing |
$675,923 |
$51,098 |
7.6% |
27.7% |
1.8% |
29.9% |
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Food and Staples Retailing |
$467,115 |
$30,008 |
6.4% |
20.6% |
6.1% |
27.9% |
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Banks |
$447,401 |
$14,523 |
3.2% |
17.6% |
6.8% |
25.6% |
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Capital Goods |
$1,149,837 |
$54,137 |
4.7% |
10.8% |
12.1% |
24.2% |
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Household and Personal Products |
$347,374 |
$16,981 |
4.9% |
17.5% |
5.1% |
23.4% |
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Commercial and Professional Services |
$97,744 |
$4,965 |
5.1% |
13.6% |
8.5% |
23.3% |
|||
Food, Beverage and Tobacco |
$864,420 |
$45,650 |
5.3% |
18.2% |
3.9% |
22.8% |
|||
Healthcare Equipment and Services |
$624,955 |
$47,613 |
7.6% |
11.0% |
10.6% |
22.8% |
|||
Consumer Services |
$281,174 |
$14,545 |
5.2% |
18.0% |
3.2% |
21.8% |
|||
Consumer Durables and Apparel |
$200,281 |
$7,733 |
3.9% |
18.7% |
1.7% |
20.7% |
|||
Materials |
$499,930 |
$14,880 |
3.0% |
13.7% |
5.2% |
19.6% |
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Transportation |
$272,551 |
$15,375 |
5.6% |
10.2% |
7.4% |
18.4% |
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Software and Services |
$1,535,346 |
$89,651 |
5.8% |
14.2% |
3.7% |
18.4% |
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Technology Hardware and Equipment |
$903,863 |
$57,462 |
6.4% |
11.1% |
6.4% |
18.2% |
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Utilities |
$477,300 |
$2,984 |
0.6% |
15.0% |
1.4% |
16.6% |
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Telecommunication Services |
$385,668 |
$23,273 |
6.0% |
14.7% |
1.3% |
16.3% |
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Energy |
$1,470,991 |
$71,125 |
4.8% |
6.8% |
4.4% |
11.5% |
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Semiconductors and Semiconductor Equipment |
$301,004 |
$25,884 |
8.6% |
5.3% |
4.6% |
10.1% |
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S&P 500 |
$14,680,805 |
$818,915 |
5.6% |
15.9% |
8.3% |
25.5% |
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Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2011 to June 2013. Includes the 487 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 6/30/2013. |
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