Buyback
Scorecard
CFOs Share Their Stock Buyback Secrets
The S&P 500 as Stock Repurchasers
Industry Comparisons
The table below shows the 10 most and least effective stock buyback programs among the companies in the S&P 500 that bought back at least 4 percent or $1 billion of their shares from June 30, 2012 through June 30, 2014, according to their return on investment. As calculated by Fortuna Advisors, a New York City-based consultancy that compiled the data for Institutional Investor, buyback ROI measures the overall rate of return of these companies’ buybacks, based on the internal rate of return of the cash flows associated with them. Buyback strategy tracks the performance of the underlying stock in terms of annualized total shareholder return. Once Fortuna determines buyback ROI and buyback strategy, buyback effectiveness can then be calculated as simply the difference between the two, determined as compounded return.
The Best and Worst Corporate
Stock Buyback Programs
Best Company Industry Market
Cap ($ Millions) Total
Buyback (S Millions) $ Total
Buyback as %
Market Cap Buyback
Strategy Buyback
Effectiveness Buyback ROI 1 Keurig Green Mountain Food, Beverage and Tobacco 20,279 1,262 6.2 88.3 15.2 117.0 2 Southwest Airlines Co. Transportation 18,583 1,220 6.6 73.5 10.5 91.6 3 SanDisk Corp. Technology Hardware and Equipment 23,623 2,037 8.6 57.8 9.9 73.5 4 Tyson Foods Food, Beverage and Tobacco 13,185 955 7.2 47.9 11.1 64.4 5 Western Digital Corp. Technology Hardware and Equipment 21,697 1,658 7.6 59.8 2.5 63.9 6 Hewlett-Packard Co. Technology Hardware and Equipment 63,027 3,634 5.8 24.0 32.1 63.7 7 LyondellBasell Industries Materials 51,490 2,169 4.2 62.6 -0.9 61.2 8 Gilead Sciences Pharmaceuticals, Biotechnology and Life Sciences 127,323 2,638 2.1 76.7 -9.6 59.7 9 Boston Scientific Corp. Healthcare Equipment and Services 16,891 975 5.8 48.6 6.5 58.3 10 Delphi Automotive Automobiles and Components 20,874 1,068 5.1 53.8 1.3 55.7 Worst Company Industry Market
Cap ($ Millions) Total
Buyback (S Millions) $ Total
Buyback as %
Market Cap Buyback
Strategy Buyback
Effectiveness Buyback ROI 1 Whole Foods Market Food and Staples Retailing 14,199 603 4.2 1.4 -21.7 -20.5 2 Coach Consumer Durables and Apparel 9,374 925 9.9 -18.7 -1.9 -20.3 3 Teradata Corp. Software and Services 6,340 806 12.7 -20.7 0.9 -20.1 4 Urban Outfitters Retailing 4,664 364 7.8 11.9 -23.9 -14.8 5 Intuitive Surgical Healthcare Equipment and Services 15,815 2,332 14.7 -14.7 4.9 -10.6 6 Navient Corp. Diversified Financials 7,487 720 9.6 15.9 -21.3 -8.8 7 Ralph Lauren Corp. Consumer Durables and Apparel 14,208 970 6.8 0.2 -8.2 -8.0 8 PetSmart Retailing 5,933 829 14.0 3.0 -10.4 -7.8 9 Mattel Consumer Durables and Apparel 13,221 653 4.9 13.6 -18.7 -7.6 10 Citrix Systems Software and Services 10,250 2,058 20.1 -12.2 5.5 -7.4 Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2012 to June 2014. Includes the 490 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/01/2014. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion.