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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 Components | 176,190 | 9,631 | 5.5 | 19.2 | 27.2 | 51.6 | |||
| Media | 588,056 | 53,707 | 9.1 | 35.0 | 4.4 | 40.9 | |||
| Diversified Financials | 1,102,881 | 49,739 | 4.5 | 27.1 | 9.0 | 38.5 | |||
| Insurance | 458,812 | 33,760 | 7.4 | 31.4 | 5.3 | 38.4 | |||
| Pharmaceuticals, Biotechnology and Life Sciences | 1,243,577 | 84,725 | 6.8 | 29.8 | 5.6 | 37.1 | |||
| Banks | 448,327 | 16,528 | 3.7 | 30.5 | 0.5 | 31.2 | |||
| Retailing | 718,407 | 52,864 | 7.4 | 35.8 | -3.7 | 30.8 | |||
| Capital Goods | 1,256,738 | 55,938 | 4.5 | 22.2 | 6.1 | 29.6 | |||
| Healthcare Equipment and Services | 638,794 | 48,354 | 7.6 | 19.5 | 8.1 | 29.1 | |||
| Technology Hardware and Equipment | 946,083 | 64,073 | 6.8 | 19.1 | 6.9 | 27.3 | |||
| Commercial and Professional Services | 102,964 | 3,955 | 3.8 | 21.9 | 1.8 | 24.1 | |||
| Food and Staples Retailing | 480,935 | 27,395 | 5.7 | 25.0 | -1.0 | 23.7 | |||
| Consumer Durables and Apparel | 210,019 | 8,057 | 3.8 | 20.2 | -0.6 | 19.5 | |||
| Transportation | 308,284 | 14,809 | 4.8 | 17.0 | 2.2 | 19.5 | |||
| Household and Personal Products | 344,801 | 18,100 | 5.2 | 17.9 | 1.2 | 19.4 | |||
| Materials | 545,389 | 13,808 | 2.5 | 19.5 | -0.5 | 18.9 | |||
| Consumer Services | 292,442 | 13,024 | 4.5 | 19.8 | -0.9 | 18.7 | |||
| Food, Beverage and Tobacco | 850,098 | 43,707 | 5.1 | 17.9 | -0.8 | 17.0 | |||
| Real Estate | 327,342 | 1,641 | 0.5 | 18.4 | -1.9 | 16.2 | |||
| Utilities | 475,359 | 2,692 | 0.6 | 16.8 | -1.0 | 15.5 | |||
| Software and Services | 1,576,033 | 92,219 | 5.9 | 17.4 | -2.4 | 14.6 | |||
| Energy | 1,570,551 | 72,770 | 4.6 | 13.6 | -1.3 | 12.2 | |||
| Semiconductors and Semiconductor Equipment | 308,066 | 22,398 | 7.3 | 11.4 | -0.5 | 10.9 | |||
| Telecommunication Services | 362,193 | 25,465 | 7.0 | 14.7 | -8.9 | 4.4 | |||
| S&P 500 | 15,332,340 | 829,359 | 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. | |||||||||