Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Clover Health Investments's annualized net income for the quarter that ended in Mar. 2026 was $109 Mil. Clover Health Investments's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $321 Mil. Therefore, Clover Health Investments's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 34.05%.
The historical rank and industry rank for Clover Health Investments's Return-on-Tangible-Equity or its related term are showing as below:
CLOV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -78.24 Med: -47.68 Max: -13.84
Current: -17.21
During the past 7 years, Clover Health Investments's highest Return-on-Tangible-Equity was -13.84%. The lowest was -78.24%. And the median was -47.68%.
CLOV's Return-on-Tangible-Equity is ranked worse than 88.89% of 18
companies
in the Healthcare Plans industry
Industry Median: 14.115
vs CLOV: -17.21
Clover Health Investments (NAS:CLOV) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Clover Health Investments Return-on-Tangible-Equity Related Terms
Clover Health Investments Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Clover Health Investments's Return-on-Tangible-Equity can be seen below:
* 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.
Clover Health Investments Return-on-Tangible-Equity Chart
CLOV vs PGNY, ALHC, PFHO: Return-on-Tangible-Equity Comparison
For the Healthcare Plans subindustry, Clover Health Investments's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Clover Health Investments's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Clover Health Investments's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.05% mean?
Clover Health Investments (CLOV) has a Return-on-Tangible-Equity of 34.05% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Clover Health Investments and its competitors. According to the industry distribution chart, Clover Health Investments ranks #16 out of 18 companies in the Healthcare Plans industry, placing it in the top 88.9%.
Is Clover Health Investments' Return-on-Tangible-Equity too high?
Clover Health Investments' current Return-on-Tangible-Equity is 34.05%. The Healthcare Plans industry median Return-on-Tangible-Equity is 14.12. Clover Health Investments' value of 34.05% is 141.2% above this industry median. Based on the distribution chart, Clover Health Investments ranks #16 out of 18 companies in the Healthcare Plans industry, which is in the bottom quartile relative to peers. Overall, Clover Health Investments has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Clover Health Investments' Return-on-Tangible-Equity compare to PGNY and ALHC?
According to the Healthcare Plans industry distribution chart, Clover Health Investments ranks #16 out of 18 companies for Return-on-Tangible-Equity. This places Clover Health Investments in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.12. Clover Health Investments' value of 34.05% is 141.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Healthcare Plans company?
The median Return-on-Tangible-Equity among Healthcare Plans companies is 14.12, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clover Health Investments's current Return-on-Tangible-Equity of 34.05% is 141.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Clover Health Investments and its competitors. For the Healthcare Plans industry, the median Return-on-Tangible-Equity is 14.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clover Health Investments's current Return-on-Tangible-Equity is 34.05%. 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 Significantly Overvalued. The stock's GF Value™ is $3.98, compared to a current price of $5.39 — trading 35.4% above its estimated fair value. The current Return-on-Tangible-Equity is 34.05% and 141.2% above the Healthcare Plans industry median of 14.12. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Clover Health Investments (CLOV), the current Return-on-Tangible-Equity is 34.05% 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 $5.39 is trading 35.4% above its estimated GF Value™ of $3.98.
GuruFocus considers Clover Health Investments to be Significantly Overvalued.
Key valuation signals for CLOV:
Return-on-Tangible-Equity: 34.05%
GF Value™: $3.98 vs. price of $5.39 (35.4% above fair value)
Industry Position: 141.2% above the Healthcare Plans median (#16 of 18)
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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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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