Second-Quarter 2014 Corporate Buyback Scorecard; Industry Comparison

September 19, 2014

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 Equipment	1,137,243	103,412	9.1	13.1	18.4	33.8
Media	655,228	56,496	8.6	35.5	-3.8	30.4
Semiconductors and Semiconductor Equipment	409,921	19,674	4.8	16.5	11.0	29.2
Transportation	378,123	21,300	5.6	27.4	0.9	28.5
Capital Goods	1,397,712	78,676	5.6	28.2	0.1	28.3
Insurance	504,454	35,598	7.1	29.2	-1.2	27.6
Healthcare Equipment and Services	752,980	56,804	7.5	22.0	4.2	27.1
Pharmaceuticals, Biotechnology and Life Sciences	1,459,954	69,523	4.8	30.8	-3.1	26.8
Materials	634,150	24,576	3.9	26.0	0.1	26.1
Diversified Financials	722,845	45,947	6.4	30.4	-4.2	24.9
Automobiles and Components	217,493	12,610	5.8	28.2	-3.2	24.1
Commercial and Professional Services	123,343	4,282	3.5	24.0	-1.1	22.6
Consumer Services	326,908	12,143	3.7	15.2	6.2	22.3
Banks	1,063,555	35,536	3.3	27.5	-4.7	21.5
Food and Staples Retailing	519,597	24,056	4.6	24.7	-3.0	20.9
Real Estate	408,970	2,091	0.5	17.4	0.9	18.5
Software and Services	1,827,448	117,851	6.4	17.0	1.2	18.5
Energy	1,870,135	73,835	3.9	21.1	-2.2	18.4
Food, Beverage and Tobacco	960,416	46,543	4.8	15.7	-0.5	15.1
Retailing	758,915	51,758	6.8	20.2	-4.6	14.7
Household and Personal Products	363,506	19,534	5.4	17.3	-3.0	13.9
Consumer Durables and Apparel	262,329	10,820	4.1	17.9	-4.9	12.2
Utilities	552,078	1,641	0.3	11.3	-0.4	10.8
Telecommunication Services	418,752	24,802	5.9	8.2	-2.3	5.7
S&P 500	17,726,056	949,506	5.4	22.4	0.5	23.1
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.