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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. | |||||||||