Buyback
Scorecard CFOs Share Their Stock Buyback Secrets 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 March 31, 2012 through March 31, 2014. 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
Cap ($ Millions)		 Total
Buyback (S Millions)		 $ Total
Buyback as %
Market Cap 		Buyback
Strategy 		Buyback
Effectiveness 		Buyback ROI
Media 627,039 56,275 9.0 36.3 0.4 36.9
Diversified Financials 694,987 46,325 6.7 29.8 4.1 35.1
Automobiles and Components 203,988 11,892 5.8 23.8 8.3 34.1
Pharmaceuticals, Biotechnology and Life Sciences 1,403,719 81,257 5.7 29.0 2.1 31.7
Capital Goods 1,367,736 74,582 5.5 24.0 6.0 31.4
Technology Hardware and Equipment 1,036,684 98,737 9.5 11.1 17.4 30.5
Insurance 483,125 35,689 7.4 29.5 0.1 29.6
Healthcare Equipment and Services 733,206 53,347 7.3 21.6 6.2 29.2
Transportation 352,307 19,599 5.6 22.0 5.8 29.1
Banks 1,085,508 34,252 3.2 27.9 0.3 28.3
Materials 603,608 22,097 3.7 223.7 2.5 26.8
Commercial and Professional Services 113,363 3,945 3.5 19.9 5.1 26.0
Software and Services 1,828,686 113,431 6.2 18.1 4.0 22.8
Semiconductors and Semiconductor Equipment 364,472 19,092 5.2 10.2 11.2 22.6
Retailing 763,707 51,553 6.8 25.5 -2.8 22.0
Food and Staples Retailing 517,885 25,053 4.8 22.0 -0.7 21.2
Consumer Durables and Apparel 264,022 9,852 3.7 17.1 2.8 20.4
Consumer Services 320,211 13,170 4.1 14.1 5.2 20.0
Household and Personal Products 363,437 18,951 5.2 15.8 -2.0 13.5
Energy 1,675,018 75,597 4.5 12.2 0.4 12.7
Food, Beverage and Tobacco 904,753 47,299 5.2 13.8 -1.5 12.2
Real Estate 380,960 2,097 0.6 15.7 -3.7 11.4
Utilities 515,552 1,845 0.4 8.8 -1.8 6.8
Telecommunication Services 409,208 27,044 6.6 6.5 -7.2 -1.2
S&P 500 17,040,181 942,981 5.5 20.9 3.4 25.1
Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from March 2012 to March 2014. Includes the 490 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 03/31/2014. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion.