Buyback
Scorecard A Tale of Two Stock Buybacks 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 December 31, 2011 through December 31, 2013. 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
Capitalization 		$ Total
Buyback 		$ Total
Buyback /
Market Cap 		Buyback
Strategy 		Buyback
Effectiveness 		Buyback ROI
Automobiles and Components 186,374 10,840 5.8 29.9 12.1 45.6
Diversified Financials 710,369 42,313 6.0 36.6 2.0 39.3
Media 645,743 54,006 8.4 40.4 -1.0 38.9
Insurance 504,160 35,085 7.0 38.4 -0.2 38.1
Capital Goods 1,402,830 62,160 4.4 30.0 3.3 34.2
Pharmaceuticals, Biotechnology and Life Sciences 1,348,265 80,598 6.0 30.9 2.1 33.6
Technology Hardware and Equipment 1,033,141 75,477 7.3 21.5 8.9 32.3
Commercial and Professional Services 116,079 3,769 3.2 27.5 1.4 29.3
Retailing 802,310 53,607 6.7 34.3 -3.7 29.3
Healthcare Equipment and Services 699,007 50,713 7.3 24.3 3.3 28.4
Transportation 349,227 16,459 4.7 22.7 3.4 26.9
Consumer Durables and Apparel 243,940 8,595 3.5 25.7 0.9 26.8
Banks 1,035,213 29,142 2.8 35.1 -7.3 25.3
Materials 597,203 15,024 2.5 30.8 -4.2 25.3
Food and Staples Retailing 518,784 27,795 5.4 26.7 -1.3 25.1
Household and Personal Products 370,150 19,219 5.2 18.7 1.3 20.2
Consumer Services 320,659 13,202 4.1 19.4 0.2 19.6
Software and Services 1,819,019 102,159 5.6 18.0 0.8 18.9
Semiconductors and Semiconductor Equipment 336,546 19,328 5.7 12.4 5.1 18.1
Food, Beverage and Tobacco 908,596 44,480 4.9 17.4 -1.9 15.1
Energy 1,686,832 73,675 4.4 16.1 -1.8 14.0
Real Estate 350,197 1,621 0.5 20.7 -8.1 10.9
Utilities 472,716 1,804 0.4 11.1 -3.0 7.8
Telecommunication Services 353,993 27,556 7.8 14.6 -8.8 4.6
S&P 500 16,811,354 868,630 5.2 25.9 0.7 26.7
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.