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First-Quarter 2014 Corporate Buyback Scorecard; Industry Comparison

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
Media627,03956,275 9.0 36.3 0.4 36.9
Diversified Financials694,98746,325 6.7 29.8 4.1 35.1
Automobiles and Components203,988 11,892 5.8 23.8 8.3 34.1
Pharmaceuticals, Biotechnology and Life Sciences1,403,719 81,257 5.7 29.0 2.1 31.7
Capital Goods1,367,736 74,582 5.5 24.0 6.0 31.4
Technology Hardware and Equipment1,036,684 98,737 9.5 11.1 17.4 30.5
Insurance483,125 35,689 7.4 29.5 0.1 29.6
Healthcare Equipment and Services733,20653,347 7.3 21.6 6.2 29.2
Transportation352,307 19,599 5.6 22.0 5.8 29.1
Banks1,085,508 34,252 3.2 27.9 0.3 28.3
Materials603,608 22,097 3.7 223.7 2.5 26.8
Commercial and Professional Services113,3633,945 3.5 19.9 5.1 26.0
Software and Services1,828,686 113,431 6.2 18.1 4.0 22.8
Semiconductors and Semiconductor Equipment364,47219,092 5.2 10.2 11.2 22.6
Retailing763,707 51,553 6.825.5 -2.822.0
Food and Staples Retailing517,885 25,053 4.8 22.0 -0.7 21.2
Consumer Durables and Apparel264,022 9,852 3.7 17.1 2.8 20.4
Consumer Services320,211 13,170 4.1 14.1 5.2 20.0
Household and Personal Products363,437 18,951 5.2 15.8 -2.0 13.5
Energy1,675,018 75,597 4.5 12.2 0.4 12.7
Food, Beverage and Tobacco904,753 47,299 5.2 13.8 -1.5 12.2
Real Estate380,960 2,097 0.6 15.7 -3.7 11.4
Utilities515,5521,845 0.4 8.8 -1.8 6.8
Telecommunication Services409,20827,044 6.6 6.5 -7.2 -1.2
S&P 500 17,040,181942,9815.5 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.