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Third-Quarter 2013 Corporate Buyback Scorecard; Industry Comparison

Buyback
Scorecard The Most and Least Effective Stock Buyback Programs The S&P 500 as Stock Repurchasers Best and Worst Programs

The table below ranks industries by the weighted average buyback ROI of their S&P 500 constituents from September 30, 2011 through September 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
Industry Market
Capitalization
$ Total
Buyback
$ Total
Buyback /
Market Cap
Buyback
Strategy
Buyback
Effectiveness
Buyback ROI
Automobiles and Components176,190 9,631 5.5 19.2 27.2 51.6
Media 588,05653,707 9.1 35.0 4.4 40.9
Diversified Financials1,102,88149,739 4.5 27.1 9.0 38.5
Insurance458,812 33,760 7.4 31.4 5.3 38.4
Pharmaceuticals, Biotechnology and Life Sciences1,243,577 84,725 6.8 29.8 5.6 37.1
Banks448,327 16,528 3.7 30.5 0.5 31.2
Retailing718,407 52,864 7.4 35.8 -3.7 30.8
Capital Goods1,256,738 55,938 4.5 22.2 6.1 29.6
Healthcare Equipment and Services638,79448,354 7.6 19.5 8.1 29.1
Technology Hardware and Equipment946,083 64,073 6.8 19.1 6.9 27.3
Commercial and Professional Services102,964 3,955 3.8 21.9 1.8 24.1
Food and Staples Retailing480,935 27,395 5.7 25.0 -1.0 23.7
Consumer Durables and Apparel210,0198,057 3.8 20.2 -0.6 19.5
Transportation308,284 14,809 4.8 17.0 2.2 19.5
Household and Personal Products344,80118,100 5.2 17.9 1.2 19.4
Materials545,389 13,808 2.5 19.5 -0.518.9
Consumer Services292,442 13,024 4.5 19.8 -0.9 18.7
Food, Beverage and Tobacco850,098 43,707 5.1 17.9 -0.8 17.0
Real Estate327,342 1,641 0.5 18.4 -1.9 16.2
Utilities475,359 2,692 0.6 16.8 -1.0 15.5
Software and Services1,576,033 92,219 5.9 17.4 -2.4 14.6
Energy1,570,551 72,770 4.6 13.6 -1.3 12.2
Semiconductors and Semiconductor Equipment308,066 22,398 7.3 11.4 -0.5 10.9
Telecommunication Services362,19325,465 7.0 14.7 -8.9 4.4
S&P 500 15,332,340829,359 5.4 22.8 2.5 25.9
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from September 2011 to September 2013. Includes the 489 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 09/30/2013. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion.