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Clover Health Investments (CLOV)
NASDAQ:CLOV
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Clover Health Investments
(NASDAQ:CLOV)
50Neutral
Positive Factors
Earnings
CLOV reported adjusted EBITDA of $25.8m, exceeding expectations and consensus, and raised the low end of the EBITDA guidance.
Market Position
Clover is the biggest beneficiary of the announcement amongst coverage, boosting a large uplift in 2026 with the company's PPO plan covering roughly 95% of Clover's membership base getting paid on 4-star beginning in 2026.
Operational Efficiency
CLOV was able to drive profitability through SG&A leverage as SW&B PMPM decreased 17.6% and G&A PMPM decreased 12.7%.
Negative Factors
Cash Flow
Clover's cash from operations was ($16.3) million in 1Q with cash and cash equivalents declining to $390.8 million.
Competitive Risks
The better-than-expected rate increase may allow MA competitors to bolster benefits and be more competitive with Clover in 2026.
Revenue Performance
Reported revenues of $462m missed consensus and estimate by 1.0% and 3.1%, respectively.
Clover Health Investments (CLOV) vs. S&P 500 (SPY)
Market Cap
$1.78B
Dividend YieldN/A
Average Volume (3M)5.94M
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-32.45%
EPS Growth80.24%
CountryUS
Employees570
SectorHealthcare
Sector Strength48
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)0.05
Shares Outstanding415,024,100
10 Day Avg. Volume5,699,829
30 Day Avg. Volume5,941,562
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)5.06
Price to Sales (P/S)0.00
P/FCF Ratio53.50
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda-3.90
Forecast
1Y Price Target
$4.69Price Target Upside35.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Clover Health Investments Business Overview & Revenue Model
Company DescriptionClover Health Investments (CLOV) is a healthcare technology company focused on improving health outcomes and lowering costs for patients. Operating primarily within the Medicare Advantage space, Clover Health utilizes its proprietary software platform, the Clover Assistant, to provide personalized healthcare recommendations to physicians and patients. The company's services are designed to enhance the quality of care while streamlining administrative operations for healthcare providers.
How the Company Makes MoneyClover Health makes money primarily through its Medicare Advantage plans, where it receives a fixed monthly payment from the Centers for Medicare & Medicaid Services (CMS) for each enrolled member. This payment is used to cover healthcare costs for members, allowing Clover to profit from efficiently managing these costs through improved care and preventative measures. The company's revenue model is heavily reliant on its ability to reduce medical expenses through data-driven insights provided by the Clover Assistant, which aims to optimize treatment plans and improve patient outcomes. Significant partnerships with healthcare providers and a focus on expanding its member base within the Medicare Advantage market are key factors contributing to its earnings.
Clover Health Investments Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and identifying areas where Clover Health may need to adjust its strategy to capture more market share.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and identifying areas where Clover Health may need to adjust its strategy to capture more market share.
Data provided by:
Main Street Data
Main Street DataClover Health Investments Financial Statement Overview
Summary
Clover Health Investments shows signs of improvement in cash flow and equity position, but continues to face challenges in revenue growth and profitability. The income statement highlights ongoing struggles with negative margins, while the balance sheet demonstrates a stronger equity position with zero debt. Despite these improvements, the company must address its revenue decline and work towards achieving profitability for long-term financial health.Income Statement
Clover Health Investments has faced declining revenue trends, with a notable drop from $3.47 billion in 2022 to $1.37 billion in 2024. The company has consistently reported negative net income and EBIT margins, indicating ongoing profitability challenges. The net profit margin remains negative, further emphasizing financial struggles, despite a slight improvement in gross profit margin from 2023 to 2024.30
Negative
Balance Sheet
The balance sheet shows some positive aspects with a debt-free position by 2024 and improving stockholders' equity. However, the equity ratio is moderate at approximately 58.7%, and the historical negative equity in 2020 indicates past financial instability. The return on equity remains negative due to persistent net losses.40
Negative
Cash Flow
The cash flow statement reveals a significant turnaround in operating cash flow from negative $115.87 million in 2023 to positive $82.45 million in 2024, resulting in positive free cash flow. However, the company's history of negative free cash flow raises concerns about sustainable cash generation.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.37B | 1.26B | 1.10B | 1.47B | 672.89M |
| Gross Profit | ||||
| 364.80M | 255.95M | 103.48M | -79.18M | 82.81M |
| EBIT | ||||
| -45.75M | -205.33M | -286.66M | -636.99M | -92.71M |
| EBITDA | ||||
| -44.94M | -207.63M | -252.03M | -569.60M | -78.73M |
| Net Income Common Stockholders | ||||
| -43.01M | -213.36M | -339.57M | -587.76M | -136.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 221.54M | 242.69M | 555.29M | 791.19M | 151.10M |
| Total Assets | ||||
| 580.74M | 570.67M | 808.62M | 950.80M | 267.25M |
| Total Debt | ||||
| 0.00 | 4.66M | 5.86M | 27.83M | 806.21K |
| Net Debt | ||||
| -194.54M | -118.20M | -97.93M | -272.14M | -27.20M |
| Total Liabilities | ||||
| 239.60M | 284.28M | 460.88M | 411.49M | 835.63M |
| Stockholders Equity | ||||
| 341.14M | 286.39M | 347.74M | 539.32M | -568.38M |
| Cash Flow | Free Cash Flow | |||
| 33.29M | -116.45M | -208.39M | -283.05M | -2.92M |
| Operating Cash Flow | ||||
| 34.84M | -115.87M | -203.93M | -282.33M | -2.23M |
| Investing Cash Flow | ||||
| 565.00K | 140.01M | 95.13M | -435.45M | -828.00M |
| Financing Cash Flow | ||||
| -17.36M | -33.86M | -4.96M | 925.39M | 858.23M |
Clover Health Investments Technical Analysis
Negative
3.47
Price Trends
3.57
Negative
3.78
Negative
3.46
Positive
Market Momentum
-0.02
Negative
47.40
Neutral
50.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLOV, the sentiment is Negative. The current price of 3.47 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.57, and above the 200-day MA of 3.46, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLOV.
Clover Health Investments Risk Analysis
Clover Health Investments disclosed 66 risk factors in its most recent earnings report. Clover Health Investments reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clover Health Investments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.46B | 15.56 | 26.72% | ― | 16.71% | 12.23% | |
75 Outperform | $31.24B | 9.35 | 12.59% | ― | 8.85% | 33.30% | |
69 Neutral | $30.12B | 17.64 | 10.09% | 1.42% | 10.09% | -12.18% | |
56 Neutral | $4.28B | 60.37 | 10.43% | ― | 54.26% | ― | |
52 Neutral | $5.21B | 3.49 | -43.30% | 2.83% | 14.70% | -0.24% | |
52 Neutral | $2.95B | ― | -75.82% | ― | 49.12% | 43.50% | |
50 Neutral | $1.78B | ― | -7.75% | ― | -32.45% | 80.24% |
* Healthcare Sector Average
Performance Comparison
CLOV
Clover Health Investments
3.47
2.45
240.20%
CNC
Centene
62.87
-14.00
-18.21%
HUM
Humana
252.86
-87.54
-25.72%
MOH
Molina Healthcare
327.69
-22.28
-6.37%
OSCR
Oscar Health
16.82
-6.01
-26.33%
ALHC
Alignment Healthcare
14.92
7.92
113.14%
Clover Health Investments Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 3.58%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call depicted a largely positive outlook for Clover Health, marked by significant growth in membership, revenue, and adjusted EBITDA. The company effectively highlighted its successful initiatives and technological advancements with Clover Assistant. Financial metrics showed considerable improvement, and the positive CMS rate notice added to the optimistic future outlook. However, there were some challenges with elevated inpatient utilization and past operational issues with claims payable, but these were minor in comparison to the overall robust performance.Q1-2025 Updates
Positive Updates
Significant Growth in Medicare Advantage Membership
The company reported a 30% increase in Medicare Advantage membership year-over-year, which contributed to strong revenue growth.
Robust Revenue and Adjusted EBITDA Growth
Revenue grew by 33% year-over-year, and adjusted EBITDA increased by a substantial 279%, reflecting the company's operational momentum.
Clover Assistant's Positive Impact
The Clover Assistant technology has been instrumental in improving health outcomes, including earlier diagnoses of diseases like chronic kidney disease and diabetes, and reducing hospitalizations for congestive heart failure.
Improved Financial Metrics
Adjusted net income grew by 322% year-over-year, and adjusted SG&A as a percentage of total revenue decreased by 360 basis points.
Successful Stock Buyback Program
The company successfully repurchased 5 million shares, completing the remaining $80 million authorized under its buyback program.
Positive CMS Final Rate Notice for 2026
The recent CMS final rate notice is expected to add momentum, especially with the introduction of a 4 Star PPO plan.
Negative Updates
Elevated Inpatient Utilization
The company experienced higher inpatient utilization in January due to a later cold and flu season, although it normalized by February and March.
Decreased Days in Claims Payable
Days in claims payable decreased by 22 days sequentially, reflecting a normalization of claims inventory and payment timeliness, but this highlights past operational challenges.
Company Guidance
During Clover Health's first quarter 2025 earnings call, the company provided robust guidance reflecting significant growth and operational efficiency. Key metrics highlighted included a 30% increase in Medicare Advantage (MA) membership, 33% revenue growth, and a remarkable 279% improvement in adjusted EBITDA year-over-year. Adjusted net income also surged by 322%. The company reconfirmed its full-year 2025 guidance, expecting MA membership to average between 103,000 and 107,000, with insurance revenue projected between $1.8 billion and $1.875 billion. They anticipate adjusted SG&A to be between $355 million and $365 million, with adjusted EBITDA and net income now forecasted between $50 million and $70 million each. Insurance Benefit Expense Ratio (BER) is expected to range from 87% to 88%. Clover Health is optimistic about continuing its momentum into the rest of the year, driven by strategic investments in technology, specifically the Clover Assistant, and growth in their Clover Home Care Services and Counterpart Health strategy.Clover Health Investments Corporate Events
Executive/Board ChangesShareholder Meetings
Clover Health Announces Board Leadership Change
Neutral
Apr 22, 2025
On April 21, 2025, Clover Health Investments announced that Lee A. Shapiro, a member of its Board of Directors and Chairman of the Audit and Nominating and Corporate Governance Committees, will not stand for re-election due to his new role as Chairman of the American Heart Association. His departure will be effective after the Company’s Annual Meeting of Shareholders on June 10, 2025. The Board plans to fill the vacancy promptly, with Thomas L. Tran stepping into Shapiro’s roles as Chairman of the Audit Committee and the Nominating and Corporate Governance Committee. This transition marks a significant change in Clover Health’s leadership, with Tran expected to uphold high standards of financial integrity and transparency, continuing the legacy of rigorous oversight and accountability established by Shapiro.
Spark’s Take on CLOV Stock
According to Spark, TipRanks’ AI Analyst, CLOV is a Neutral.
Clover Health’s stock score is influenced by its ongoing financial challenges, despite positive developments in operational metrics and an encouraging earnings call. The financial performance remains a significant concern due to negative margins and revenue decline. Technical indicators signal potential weakness, while valuation remains unattractive due to losses. The company’s achievements in profitability and membership growth offer potential for future improvement.
To see Spark’s full report on CLOV stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.