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Fourth-Quarter 2013 Corporate Buyback Scorecard; Industry Comparison

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 Components186,37410,840 5.8 29.9 12.1 45.6
Diversified Financials710,36942,313 6.0 36.6 2.0 39.3
Media645,74354,006 8.4 40.4 -1.0 38.9
Insurance504,160 35,085 7.0 38.4 -0.2 38.1
Capital Goods1,402,830 62,160 4.4 30.0 3.3 34.2
Pharmaceuticals, Biotechnology and Life Sciences1,348,265 80,598 6.0 30.9 2.1 33.6
Technology Hardware and Equipment1,033,141 75,477 7.3 21.5 8.9 32.3
Commercial and Professional Services116,079 3,769 3.2 27.5 1.4 29.3
Retailing802,31053,607 6.7 34.3 -3.7 29.3
Healthcare Equipment and Services699,007 50,713 7.3 24.3 3.3 28.4
Transportation349,227 16,459 4.7 22.7 3.4 26.9
Consumer Durables and Apparel243,940 8,595 3.5 25.7 0.9 26.8
Banks1,035,21329,142 2.8 35.1 -7.3 25.3
Materials597,203 15,024 2.5 30.8 -4.2 25.3
Food and Staples Retailing518,78427,795 5.4 26.7 -1.3 25.1
Household and Personal Products370,150 19,219 5.2 18.7 1.320.2
Consumer Services320,659 13,202 4.1 19.4 0.2 19.6
Software and Services1,819,019 102,159 5.6 18.0 0.8 18.9
Semiconductors and Semiconductor Equipment336,546 19,328 5.7 12.4 5.1 18.1
Food, Beverage and Tobacco908,596 44,480 4.9 17.4 -1.9 15.1
Energy1,686,832 73,675 4.4 16.1 -1.8 14.0
Real Estate350,197 1,621 0.5 20.7 -8.1 10.9
Utilities472,716 1,804 0.4 11.1 -3.0 7.8
Telecommunication Services353,99327,556 7.8 14.6 -8.8 4.6
S&P 500 16,811,354868,6305.2 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.