Buyback
Scorecard
Stock Buybacks Prepare for the Bear Market
The S&P 500 as Stock Repurchasers
Industry Comparisons
The table below ranks the 284 companies in the S&P 500 that bought back at least 4 percent of their shares from June 30, 2013, through June 30, 2015. 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.
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 Darden Restaurants Consumer Services 8,941 503 5.6 18.1 37.8 62.7 2 Humana Healthcare Equipment and Services 28,650 1,559 5.4 55.0 4.9 62.6 3 AmerisourceBergen Corp. Healthcare Equipment and Services 23,361 1,637 7.0 46.0 9.1 59.4 4 Southwest Airlines Co. Transportation 22,114 1,824 8.2 70.8 -8.1 57.0 5 The Kroger Co. Food and Staples Retailing 35,219 2,284 6.5 48.2 5.4 56.2 6 Anthem Healthcare Equipment and Services 43,421 4,964 11.4 48.6 4.6 55.5 7 Edwards Lifesciences Corp. Healthcare Equipment and Services 15,319 731 4.8 38.1 12.3 55.1 8 Tesoro Corp. Energy 10,621 468 4.4 26.8 20.2 52.4 9 Cigna Corp. Healthcare Equipment and Services 41,693 2,874 6.9 43.2 5.0 50.3 10 Red Hat Software and Services 13,931 595 4.3 25.6 19.0 49.5 Worst Company Industry Market
Cap ($ Millions) Total
Buyback (S Millions) $ Total
Buyback as %
Market Cap Buyback
Strategy Buyback
Effectiveness Buyback ROI 1 Michael Kors Holdings Ltd. Consumer Durables and Apparel 8,372 849 10.1 -1.9 -42.9 -44.0 2 National Oilwell Varco Energy 18,726 2,556 13.6 -6.7 -26.4 -31.3 3 Fossil Group Consumer Durables and Apparel 3,385 1,007 29.7 -12.3 -16.9 -27.2 4 Apache Corp. Energy 21,732 2,612 12.0 -9.9 -18.1 -26.2 5 Mattel Consumer Durables and Apparel 8,692 519 6.0 -20.0 -4.2 -23.3 6 FMC Technologies Energy 9,581 407 4.2 -13.1 -11.6 -23.2 7 Joy Global Capital Goods 3,528 533 15.1 -13.3 -6.7 -19.1 8 Murphy Oil Corp. Energy 7,398 875 11.8 -6.1 -13.6 -18.9 9 Fluor Corp. Capital Goods 7,815 1,189 15.2 -1.4 -15.8 -17.0 10 Coach Consumer Durables and Apparel 9,562 525 5.5 -15.0 -2.1 -16.8 Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2013 to June 2015. Includes the 488 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/30/2015. Companies included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 billion.