This content is from: Research
Second-Quarter 2014 Corporate Buyback Scorecard; Best & Worst Companies
The table below shows the 10 most and least effective stock buyback programs among the companies in the S&P 500 that bought back at least 4 percent or $1 billion of their shares from June 30, 2012 through June 30, 2014, according to their return on investment.
Buyback Scorecard |
The table below shows the 10 most and least effective stock buyback programs among the companies in the S&P 500 that bought back at least 4 percent or $1 billion of their shares from June 30, 2012 through June 30, 2014, according to their return on investment. As calculated by Fortuna Advisors, a New York City-based consultancy that compiled the data for Institutional Investor, buyback ROI measures the overall rate of return of these companies’ buybacks, based on the internal rate of return of the cash flows associated with them. Buyback strategy tracks the performance of the underlying stock in terms of annualized total shareholder return. Once Fortuna determines buyback ROI and buyback strategy, buyback effectiveness can then be calculated as simply the difference between the two, determined as compounded return.
The Best and Worst Corporate Stock Buyback Programs | |||||||||
| Best | |||||||||
| Company | Industry | Market Cap ($ Millions) | Total Buyback (S Millions) | $ Total Buyback as % Market Cap | Buyback Strategy | Buyback Effectiveness | Buyback ROI | ||
| 1 | Keurig Green Mountain | Food, Beverage and Tobacco | 20,279 | 1,262 | 6.2 | 88.3 | 15.2 | 117.0 | |
| 2 | Southwest Airlines Co. | Transportation | 18,583 | 1,220 | 6.6 | 73.5 | 10.5 | 91.6 | |
| 3 | SanDisk Corp. | Technology Hardware and Equipment | 23,623 | 2,037 | 8.6 | 57.8 | 9.9 | 73.5 | |
| 4 | Tyson Foods | Food, Beverage and Tobacco | 13,185 | 955 | 7.2 | 47.9 | 11.1 | 64.4 | |
| 5 | Western Digital Corp. | Technology Hardware and Equipment | 21,697 | 1,658 | 7.6 | 59.8 | 2.5 | 63.9 | |
| 6 | Hewlett-Packard Co. | Technology Hardware and Equipment | 63,027 | 3,634 | 5.8 | 24.0 | 32.1 | 63.7 | |
| 7 | LyondellBasell Industries | Materials | 51,490 | 2,169 | 4.2 | 62.6 | -0.9 | 61.2 | |
| 8 | Gilead Sciences | Pharmaceuticals, Biotechnology and Life Sciences | 127,323 | 2,638 | 2.1 | 76.7 | -9.6 | 59.7 | |
| 9 | Boston Scientific Corp. | Healthcare Equipment and Services | 16,891 | 975 | 5.8 | 48.6 | 6.5 | 58.3 | |
| 10 | Delphi Automotive | Automobiles and Components | 20,874 | 1,068 | 5.1 | 53.8 | 1.3 | 55.7 | |
| Worst | |||||||||
| Company | Industry | Market Cap ($ Millions) | Total Buyback (S Millions) | $ Total Buyback as % Market Cap | Buyback Strategy | Buyback Effectiveness | Buyback ROI | ||
| 1 | Whole Foods Market | Food and Staples Retailing | 14,199 | 603 | 4.2 | 1.4 | -21.7 | -20.5 | |
| 2 | Coach | Consumer Durables and Apparel | 9,374 | 925 | 9.9 | -18.7 | -1.9 | -20.3 | |
| 3 | Teradata Corp. | Software and Services | 6,340 | 806 | 12.7 | -20.7 | 0.9 | -20.1 | |
| 4 | Urban Outfitters | Retailing | 4,664 | 364 | 7.8 | 11.9 | -23.9 | -14.8 | |
| 5 | Intuitive Surgical | Healthcare Equipment and Services | 15,815 | 2,332 | 14.7 | -14.7 | 4.9 | -10.6 | |
| 6 | Navient Corp. | Diversified Financials | 7,487 | 720 | 9.6 | 15.9 | -21.3 | -8.8 | |
| 7 | Ralph Lauren Corp. | Consumer Durables and Apparel | 14,208 | 970 | 6.8 | 0.2 | -8.2 | -8.0 | |
| 8 | PetSmart | Retailing | 5,933 | 829 | 14.0 | 3.0 | -10.4 | -7.8 | |
| 9 | Mattel | Consumer Durables and Apparel | 13,221 | 653 | 4.9 | 13.6 | -18.7 | -7.6 | |
| 10 | Citrix Systems | Software and Services | 10,250 | 2,058 | 20.1 | -12.2 | 5.5 | -7.4 | |