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.