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Second-Quarter 2014 Corporate Buyback Scorecard; Industry Comparison

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,

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.

How Industries Compare as Stock Repurchasers
Industry Market
Cap ($ Millions)		Total
Buyback (S Millions)		$ Total
Buyback as %
Market Cap 		Buyback
Strategy 		Buyback
Effectiveness 		Buyback ROI
Technology Hardware and Equipment1,137,243103,4129.113.118.4 33.8
Media655,22856,496 8.6 35.5 -3.8 30.4
Semiconductors and Semiconductor Equipment409,921 19,6744.8 16.511.0 29.2
Transportation378,123 21,300 5.6 27.4 0.9 28.5
Capital Goods1,397,712 78,6765.6 28.2 0.128.3
Insurance504,454 35,598 7.1 29.2 -1.2 27.6
Healthcare Equipment and Services752,98056,8047.522.04.227.1
Pharmaceuticals, Biotechnology and Life Sciences1,459,95469,523 4.8 30.8-3.1 26.8
Materials634,150 24,5763.9 26.0 0.1 26.1
Diversified Financials722,845 45,947 6.4 30.4 -4.2 24.9
Automobiles and Components217,493 12,610 5.8 28.2 -3.2 24.1
Commercial and Professional Services123,3434,282 3.5 24.0 -1.1 22.6
Consumer Services326,908 12,143 3.7 15.2 6.2 22.3
Banks1,063,55535,536 3.3 27.5 -4.7 21.5
Food and Staples Retailing519,597 24,056 4.624.7 -3.020.9
Real Estate408,9702,0910.517.40.918.5
Software and Services1,827,448117,8516.417.0 1.218.5
Energy1,870,135 73,835 3.9 21.1 -2.2 18.4
Food, Beverage and Tobacco960,416 46,5434.8 15.7 -0.5 15.1
Retailing758,915 51,7586.820.2-4.614.7
Household and Personal Products363,506 19,5345.4 17.3-3.0 13.9
Consumer Durables and Apparel262,329 10,820 4.1 17.9-4.912.2
Utilities552,0781,6410.3 11.3 -0.4 10.8
Telecommunication Services418,75224,802 5.9 8.2 -2.3 5.7
S&P 500 17,726,056949,5065.422.40.523.1
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2012 to June 2014. Includes the 490 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/01/2014. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion.

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