Share Cannibals | September 2024 | All 35 Top Stocks + Google Spreadsheet

Top Stock Buyback Machines: Inside the World of Share Cannibals

As we roll into September, let’s chat about some companies that are making headlines in the stock market with their bold share buybacks, sometimes nicknamed "share cannibals."

These companies are snapping up their own shares, shrinking the number of shares available and, in theory (and in practice), boosting the value of the ones still out there. It’s an interesting strategy that can pay off for shareholders big time.

In this piece, we'll dive into some of the standout share cannibals this month and share a few cool insights based on their recent metrics.

What Are Share Cannibals?

The term "share cannibal" might sound a bit dramatic, but it aptly captures the essence of companies that aggressively buy back their own shares from the open market. When a company repurchases its shares, it reduces the number of outstanding shares available. This reduction can increase the earnings per share (EPS) since the same amount of earnings is now spread over fewer shares. In theory, this should lead to a higher stock price, rewarding shareholders.

But why would a company want to "cannibalize" its own shares? There are a few reasons:

• Undervaluation: Companies may believe their shares are undervalued and consider buybacks a good investment.

• Returning Capital: Buybacks are a way to return excess capital to shareholders, especially if the company doesn't have better investment opportunities.

• Boosting Metrics: By reducing the share count, companies can artificially boost metrics like EPS, which might make the stock more attractive to investors.

In essence, share cannibals are companies that devour their own shares to boost shareholder value, often signaling confidence in their future performance. However, it's not without controversy, as critics argue that buybacks can sometimes prioritize short-term gains over long-term stability.

All 35 Share Cannibals of September (Click Here For The Google Sheet Link)

Here’s a look at some of the top share cannibals for September, based on their buyback activity, financial metrics, and their impact over the past decade (pay attention to the share count reduction over the past 10 years)

I'll be taking deep dives into many of these stocks in the future, so be sure to subscribe to my newsletter to stay updated and never miss an update!

Here is the text view as well:

• Apple Inc. (AAPL)

  • Market Cap: $3.48 trillion

  • Last Price: $229.00

  • Forward P/E: 31.7

  • Annualized Return (10Y): 25.94%

  • Buyback Yield: 2.77%

  • Forward EV/EBITDA: 24.2

  • Share Count Reduction Over 10 Years: 36.52%

• Applied Materials Inc. (AMAT)

  • Market Cap: $162.62 billion

  • Last Price: $197.26

  • Forward P/E: 21.1

  • Annualized Return (10Y): 25.50%

  • Buyback Yield: 1.92%

  • Forward EV/EBITDA: 17.6

  • Share Count Reduction Over 10 Years: 32.34%

• Ameriprise Financial Inc. (AMP)

  • Market Cap: $44.13 billion

  • Last Price: $449.44

  • Forward P/E: 12.4

  • Annualized Return (10Y): 16.11%

  • Buyback Yield: 5.01%

  • Forward EV/EBITDA: 7.1

  • Share Count Reduction Over 10 Years: 47.55%

• AutoNation Inc. (AN)

  • Market Cap: $7.06 billion

  • Last Price: $177.98

  • Forward P/E: 9.6

  • Annualized Return (10Y): 12.60%

  • Buyback Yield: 10.20%

  • Forward EV/EBITDA: 9.7

  • Share Count Reduction Over 10 Years: 66.53%

• American Express Company (AXP)

  • Market Cap: $183.88 billion

  • Last Price: $258.65

  • Forward P/E: 19.2

  • Annualized Return (10Y): 12.82%

  • Buyback Yield: 2.88%

  • Forward EV/EBITDA: Not Available

  • Share Count Reduction Over 10 Years: 29.00%

• AutoZone Inc. (AZO)

  • Market Cap: $54.35 billion

  • Last Price: $3181.48

  • Forward P/E: 19.7

  • Annualized Return (10Y): 19.41%

  • Buyback Yield: 5.99%

  • Forward EV/EBITDA: 14.7

  • Share Count Reduction Over 10 Years: 47.60%

• Booking Holdings Inc. (BKNG)

  • Market Cap: $131.05 billion

  • Last Price: $3909.23

  • Forward P/E: 21.3

  • Annualized Return (10Y): 12.17%

  • Buyback Yield: 6.57%

  • Forward EV/EBITDA: 16.3

  • Share Count Reduction Over 10 Years: 35.94%

• BlackRock Inc. (BLK)

  • Market Cap: $133.58 billion

  • Last Price: $901.81

  • Forward P/E: 20.9

  • Annualized Return (10Y): 13.32%

  • Buyback Yield: 1.27%

  • Forward EV/EBITDA: 14.9

  • Share Count Reduction Over 10 Years: 11.89%

• Avis Budget Group Inc. (CAR)

  • Market Cap: $2.92 billion

  • Last Price: $81.99

  • Forward P/E: 7.6

  • Annualized Return (10Y): 2.48%

  • Buyback Yield: 26.23%

  • Forward EV/EBITDA: 27.8

  • Share Count Reduction Over 10 Years: 65.72%

• Dillard's Inc. (DDS)

  • Market Cap: $5.50 billion

  • Last Price: $338.97

  • Forward P/E: 11.7

  • Annualized Return (10Y): 13.67%

  • Buyback Yield: 1.17%

  • Forward EV/EBITDA: 6.7

  • Share Count Reduction Over 10 Years: 62.44%

• Discover Financial Services (DFS)

  • Market Cap: $34.83 billion

  • Last Price: $138.71

  • Forward P/E: 11.5

  • Annualized Return (10Y): 10.72%

  • Buyback Yield: 0.13%

  • Forward EV/EBITDA: Not Available

  • Share Count Reduction Over 10 Years: 45.64%

• Dollarama Inc. (DOL)

  • Market Cap: $28.54 billion

  • Last Price: $136.50

  • Forward P/E: 33.2

  • Annualized Return (10Y): 24.80%

  • Buyback Yield: 1.99%

  • Forward EV/EBITDA: 20.5

  • Share Count Reduction Over 10 Years: 29.30%

• Domino's Pizza Inc. (DPZ)

  • Market Cap: $14.49 billion

  • Last Price: $414.21

  • Forward P/E: 24.7

  • Annualized Return (10Y): 19.80%

  • Buyback Yield: 1.01%

  • Forward EV/EBITDA: 19.2

  • Share Count Reduction Over 10 Years: 26.18%

• General Dynamics Corporation (GD)

  • Market Cap: $82.13 billion

  • Last Price: $299.36

  • Forward P/E: 18.8

  • Annualized Return (10Y): 11.69%

  • Buyback Yield: 0.24%

  • Forward EV/EBITDA: 14.2

  • Share Count Reduction Over 10 Years: 18.47%

• Grand Canyon Education Inc. (LOPE)

  • Market Cap: $4.21 billion

  • Last Price: $145.01

  • Forward P/E: 17.5

  • Annualized Return (10Y): 12.85%

  • Buyback Yield: 2.83%

  • Forward EV/EBITDA: 11.6

  • Share Count Reduction Over 10 Years: 35.95%

• HCA Healthcare Inc. (HCA)

  • Market Cap: $102.09 billion

  • Last Price: $395.59

  • Forward P/E: 16.7

  • Annualized Return (10Y): 19.63%

  • Buyback Yield: 4.50%

  • Forward EV/EBITDA: 10.2

  • Share Count Reduction Over 10 Years: 38.92%

• Home Federal Bancorp Inc. of Louisiana (HFBL)

  • Market Cap: $38.14 million

  • Last Price: $12.63

  • Forward P/E: Not Available

  • Annualized Return (10Y): 4.98%

  • Buyback Yield: Not Available

  • Forward EV/EBITDA: Not Available

  • Share Count Reduction Over 10 Years: 25.00%

• Lowe's Companies Inc. (LOW)

  • Market Cap: $140.97 billion

  • Last Price: $248.50

  • Forward P/E: 20.6

  • Annualized Return (10Y): 18.91%

  • Buyback Yield: 2.53%

  • Forward EV/EBITDA: 14.3

  • Share Count Reduction Over 10 Years: 40.90%

• MGM Resorts International (MGM)

  • Market Cap: $11.42 billion

  • Last Price: $37.59

  • Forward P/E: 12.2

  • Annualized Return (10Y): 4.98%

  • Buyback Yield: 18.43%

  • Forward EV/EBITDA: 8.4

  • Share Count Reduction Over 10 Years: 32.96%

• MSCI Inc. (MSCI)

  • Market Cap: $45.66 billion

  • Last Price: $580.59

  • Forward P/E: 36.9

  • Annualized Return (10Y): 30.21%

  • Buyback Yield: 0.72%

  • Forward EV/EBITDA: 28.1

  • Share Count Reduction Over 10 Years: 31.65%

• Northrop Grumman Corporation (NOC)

  • Market Cap: $76.52 billion

  • Last Price: $523.21

  • Forward P/E: 20.3

  • Annualized Return (10Y): 17.02%

  • Buyback Yield: 3.11%

  • Forward EV/EBITDA: 15.5

  • Share Count Reduction Over 10 Years: 28.38%

• NVR Inc. (NVR)

  • Market Cap: $28.23 billion

  • Last Price: $9,172.46

  • Forward P/E: 18.4

  • Annualized Return (10Y): 22.80%

  • Buyback Yield: 6.15%

  • Forward EV/EBITDA: 12.6

  • Share Count Reduction Over 10 Years: 25.58%

• Oracle Corporation (ORCL)

  • Market Cap: $389.38 billion

  • Last Price: $141.29

  • Forward P/E: 22.5

  • Annualized Return (10Y): 14.79%

  • Buyback Yield: 0.64%

  • Forward EV/EBITDA: 15.7

  • Share Count Reduction Over 10 Years: 42.13%

• O'Reilly Automotive Inc. (ORLY)

  • Market Cap: $65.55 billion

  • Last Price: $1,129.97

  • Forward P/E: 26.0

  • Annualized Return (10Y): 21.87%

  • Buyback Yield: 3.52%

  • Forward EV/EBITDA: 18.6

  • Share Count Reduction Over 10 Years: 43.24%

• PulteGroup Inc. (PHM)

  • Market Cap: $27.32 billion

  • Last Price: $131.65

  • Forward P/E: 10.2

  • Annualized Return (10Y): 22.82%

  • Buyback Yield: 4.32%

  • Forward EV/EBITDA: 7.8

  • Share Count Reduction Over 10 Years: 25.78%

• Texas Instruments Incorporated (TXN)

  • Market Cap: $195.70 billion

  • Last Price: $214.34

  • Forward P/E: 37.2

  • Annualized Return (10Y): 19.25%

  • Buyback Yield: -0.12% (issued more shares lately)

  • Forward EV/EBITDA: 25.5

  • Share Count Reduction Over 10 Years: 38.52%

• Ulta Beauty Inc. (ULTA)

  • Market Cap: $16.62 billion

  • Last Price: $352.84

  • Forward P/E: 14.7

  • Annualized Return (10Y): 13.73%

  • Buyback Yield: 5.72%

  • Forward EV/EBITDA: 10.5

  • Share Count Reduction Over 10 Years: 24.88%

• Visa Inc. (V)

  • Market Cap: $525.76 billion

  • Last Price: $276.37

  • Forward P/E: 25.8

  • Annualized Return (10Y): 18.73%

  • Buyback Yield: 2.75%

  • Forward EV/EBITDA: 19.5

  • Share Count Reduction Over 10 Years: 16.07%

• Winmark Corporation (WINA)

  • Market Cap: $1.27 billion

  • Last Price: $360.60

  • Forward P/E: 31.3

  • Annualized Return (10Y): 19.08%

  • Buyback Yield: -0.29% (issued more shares lately)

  • Forward EV/EBITDA: 23.5

  • Share Count Reduction Over 10 Years: 31.37%

• Walmart Inc. (WMT)

  • Market Cap: $621.20 billion

  • Last Price: $77.23

  • Forward P/E: 30.1

  • Annualized Return (10Y): 14.15%

  • Buyback Yield: 0.59%

  • Forward EV/EBITDA: 15.5

  • Share Count Reduction Over 10 Years: 6.68%

• Williams-Sonoma Inc. (WSM)

  • Market Cap: $16.97 billion

  • Last Price: $134.33

  • Forward P/E: 16.6

  • Annualized Return (10Y): 17.95%

  • Buyback Yield: 1.58%

  • Forward EV/EBITDA: 10.6

  • Share Count Reduction Over 10 Years: 31.51%

• White Mountains Insurance Group Ltd. (WTM)

  • Market Cap: $4.67 billion

  • Last Price: $1,844.24

  • Forward P/E: Not Available

  • Annualized Return (10Y): 11.37%

  • Buyback Yield: 0.17%

  • Forward EV/EBITDA: 18.9

  • Share Count Reduction Over 10 Years: 13.51%