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Buyback Scorecard The Most and Least Effective Stock Buyback Programs Best and Worst Programs Industry Comparisons |
The table below ranks the 268 companies in the S&P 500 that bought back at least 4 percent of their shares from September 30, 2011, through September 30, 2013. 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.
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How the S&P 500 Stack Up as Stock Repurchasers 1—50 | 51—100 | 101—150 | 151—200 | 201—250 | 251—263 | ||||||||
| Company | Industry | Market Capitalization | $ Total Buyback | $ Total Buyback / Market Cap | Buyback Strategy | Buyback Effectiveness | Buyback ROI | |
| Average | $41,922 | $3,016 | 8.7% | 23.1% | 4.4% | 28.5% | ||
| Median | $17,310 | $1,400 | 7.8% | 22.0% | 3.5% | 28.4% | ||
| 251 | Intel Corp. | Semiconductors and Semiconductor Equipment | 114,192 | 11,162 | 9.8 | 7.6 | -7.4 | -0.4 |
| 252 | International Business Machines Corp. | Software and Services | 202,851 | 23,638 | 11.7 | 6.7 | -7.6 | -1.4 |
| 253 | Cameron International Corp. | Energy | 14,366 | 582 | 4.0 | 10.1 | -11.6 | -2.7 |
| 254 | CH Robinson Worldwide | Transportation | 9,498 | 1,049 | 11.0 | -7.2 | -4.5 | -3.0 |
| 255 | The Mosaic Co. | Materials | 18,319 | 1,163 | 6.3 | -15.5 | 10.7 | -6.4 |
| 256 | Allergan | Pharmaceuticals, Biotechnology and Life Sciences | 26,851 | 1,646 | 6.1 | 6.0 | -12.1 | -6.8 |
| 257 | Coach | Consumer Durables and Apparel | 15,323 | 1,216 | 7.9 | -1.1 | -5.7 | -6.8 |
| 258 | Teradata Corp. | Software and Services | 9,042 | 496 | 5.5 | 4.6 | -10.9 | -6.8 |
| 259 | CenturyLink | Telecommunication Services | 18,849 | 1,289 | 6.8 | 4.8 | -17.6 | -13.6 |
| 260 | F5 Networks | Technology Hardware and Equipment | 6,719 | 385 | 5.7 | -1.5 | -13.6 | -15.0 |
| 261 | Edwards Lifesciences Corp. | Healthcare Equipment and Services | 7,818 | 11.4 | -3.8 | -12.4 | -15.7 | -7.8% |
| 262 | Broadcom Corp. | Semiconductors and Semiconductor Equipment | 15,066 | 628 | 4.2 | -8.3 | -30.4 | -36.2 |
| 263 | Intuitive Surgical | Healthcare Equipment and Services | 14,942 | 1,348 | 9.0 | 3.6 | -39.2 | -37.0 |
| Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from Septmeber 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. | ||||||||