Clover Health InvestmentsCLOV +1.58%81 Gross Margin % is 21.30% as of Mar. 2026, which is 73% above its 10-year median of 12.31. GuruFocus rates CLOV with a GF Score™ of 81/100 and a GF Value™ of $3.95 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 14 Healthcare Plans companies, Clover Health Investments ranks worse than 57.14% on this metric.
Clover Health Investments (NAS:CLOV) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Clover Health Investments had a gross margin of 21.30% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Clover Health Investments Gross Margin % Related Terms
Clover Health Investments Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CLOV vs PGNY, ALHC, PFHO: Gross Margin % Comparison
For the Healthcare Plans subindustry, Clover Health Investments's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Clover Health Investments Gross Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Clover Health Investments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Clover Health Investments's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Clover Health Investments (CLOV) has a Gross Margin % of 21.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Clover Health Investments and its competitors. This is 73% above median its historical median of 12.31. According to the industry distribution chart, Clover Health Investments ranks #8 out of 14 companies in the Healthcare Plans industry, placing it in the top 57.1%.
Is Clover Health Investments' Gross Margin % too high?
Clover Health Investments' current Gross Margin % of 21.30% is 73% above median its 10-year median of 12.31. The Healthcare Plans industry median Gross Margin % is 18.60. Clover Health Investments' value of 21.30% is 14.5% above this industry median. Based on the distribution chart, Clover Health Investments ranks #8 out of 14 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, Clover Health Investments has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Clover Health Investments' Gross Margin % compare to PGNY and ALHC?
According to the Healthcare Plans industry distribution chart, Clover Health Investments ranks #8 out of 14 companies for Gross Margin %. This places Clover Health Investments in the lower half of its industry. The industry median Gross Margin % is 18.60. Clover Health Investments' value of 21.30% is 14.5% above this benchmark. While the company's 10-year median is 12.31 vs. the industry median of 18.60, Clover Health Investments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Plans company?
The median Gross Margin % among Healthcare Plans companies is 18.60, based on 14 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clover Health Investments's current Gross Margin % of 21.30% is 14.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Clover Health Investments and its competitors. For the Healthcare Plans industry, the median Gross Margin % is 18.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clover Health Investments's current Gross Margin % is 21.30%, which is 73% above median its own 10-year median of 12.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clover Health Investments stock overvalued right now?
Based on GuruFocus' analysis, Clover Health Investments (CLOV) is currently considered Modestly Overvalued. The stock's GF Value™ is $3.95, compared to a current price of $5.13 — trading 29.9% above its estimated fair value. The current Gross Margin % is 21.30%, which is 73% above median its 10-year median of 12.31 and 14.5% above the Healthcare Plans industry median of 18.60. Clover Health Investments' overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Clover Health Investments (CLOV), the current Gross Margin % is 21.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Clover Health Investments (CLOV) Overvalued in 2026?
Based on GuruFocus' analysis, Clover Health Investments stock appears to be overvalued.
The current stock price of $5.13 is trading 29.9% above its estimated GF Value™ of $3.95.
GuruFocus considers Clover Health Investments to be Modestly Overvalued.
Key valuation signals for CLOV:
Gross Margin %: 21.30% (73% above median its 10-year median of 12.31)
GF Value™: $3.95 vs. price of $5.13 (29.9% above fair value)
Industry Position: 14.5% above the Healthcare Plans median (#8 of 14)
No single metric tells the full story. See the CLOV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clover Health Investments Corp is a healthcare technology company. It focuses on empowering Medicare physicians to proactively manage chronic diseases through its proprietary software platform, Clover Assistant. This cloud-based solution provides personalized insights to physicians, enabling early detection and management of chronic conditions. It operates in one segment: Insurance, through which it offers PPO and HMO plans to Medicare Advantage members in several states.
81GF Score
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