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Buyback Scorecard A Tale of Two Stock Buybacks Best and Worst Programs Industry Comparisons |
The table below ranks the 269 companies in the S&P 500 that bought back at least 4 percent of their shares from December 31, 2011, through December 31, 2013. The companies are ranked according to their return on investment from these repurchases. 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.
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How the S&P 500 Stack Up as Stock Repurchasers 1—50 | 51—100 | 101—150 | 151—200 | 201—250 | 251—269 | ||||||||
| Company | Industry | Market Capitalization | $ Total Buyback | $ Total Buyback / Market Cap | Buyback Strategy | Buyback Effectiveness | Buyback ROI | |
| Average | $45,904 | $3,097 | 8.1% | 26.7% | 2.3% | 29.5% | ||
| Median | $19,140 | $1,452 | 7.0% | 25.6% | 1.3% | 29.3% | ||
| 251 | Monster Beverage Corp. | Food, Beverage and Tobacco | 11,363 | 795 | 7.0 | 13.7 | -8.1 | 4.5 |
| 252 | Philip Morris International | Food, Beverage and Tobacco | 139,597 | 12,488 | 8.9 | 14.6 | -9.9 | 3.3 |
| 253 | Intel Corp. | Semiconductors and Semiconductor Equipment | 129,022 | 7,550 | 5.9 | 4.3 | -1.2 | 3.1 |
| 254 | Quest Diagnostics | Healthcare Equipment and Services | 7,786 | 1,237 | 15.9 | 5.9 | -4.3 | 1.4 |
| 255 | CH Robinson Worldwide | Transportation | 8,847 | 1,063 | 12.0 | -5.6 | 6.2 | 0.3 |
| 256 | Altera Corp. | Semiconductors and Semiconductor Equipment | 10,440 | 490 | 4.7 | -2.4 | 1.7 | -0.8 |
| 257 | Allergan | Pharmaceuticals, Biotechnology and Life Sciences | 33,009 | 1,560 | 4.7 | 6.9 | -7.4 | -0.9 |
| 258 | Eli Lilly and Co. | Pharmaceuticals, Biotechnology and Life Sciences | 55,776 | 2,419 | 4.3 | 19.1 | -16.9 | -1.0 |
| 259 | EMC Corp. | Technology Hardware and Equipment | 51,755 | 3,700 | 7.1 | 2.8 | -6.8 | -4.2 |
| 260 | International Business Machines Corp. | Software and Services | 203,674 | 25,854 | 12.7 | 0.6 | -7.5 | -6.9 |
| 261 | Coach | Consumer Durables and Apparel | 15,742 | 1,091 | 6.9 | -4.0 | -4.0 | -7.8 |
| 262 | Red Hat | Software and Services | 10,620 | 436 | 4.1 | -0.6 | -7.8 | -8.3 |
| 263 | Cameron International Corp. | Energy | 14,160 | 1,553 | 11.0 | 8.1 | -16.8 | -10.0 |
| 264 | F5 Networks | Technology Hardware and Equipment | 7,052 | 550 | 7.8 | -8.4 | -3.9 | -12.0 |
| 265 | Citrix Systems | Software and Services | 11,790 | 657 | 5.6 | -5.2 | -9.8 | -14.5 |
| 266 | CenturyLink | Telecommunication Services | 18,826 | 1,623 | 8.6 | 1.6 | -16.2 | -14.9 |
| 267 | Edwards Lifesciences Corp. | Healthcare Equipment and Services | 7,195 | 850 | 11.8 | -1.3 | -15.5 | 16.6 |
| 268 | Intuitive Surgical | Healthcare Equipment and Services | 14,620 | 1348 | 9.2 | -5.4 | -23.4 | -27.5 |
| 269 | Teradata Corp. | Software and Services | 7,433 | 659 | 8.9 | -8.3 | -24.3 | -30.5 |
| Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from December 2011 to December 2013. Includes the 486 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 12/31/2013. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion. | ||||||||