Gulf Resources (GURE) AI Stock Analysis

• Market Cap: $6.16M
• Dividend Yield: N/A
• Average Volume (3M): 589.22K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.61
• Revenue Growth: 61.85%
• EPS Growth: 49.02%
• Country: US
• Employees: 367
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -26.35
• Shares Outstanding: 1,382,114
• 10 Day Avg. Volume: 1,545,679
• 30 Day Avg. Volume: 589,217
• PEG Ratio: 0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -0.10
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: -0.14
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $4.50 ▲(8.96% Upside)

The score is held down primarily by sharply deteriorating financial performance (steep revenue decline, deeply negative margins, and negative free cash flow). Technicals provide only a partial offset with short-term strength but a still-weak longer-term trend. Valuation is also a negative factor due to a loss-driven negative P/E and no dividend support.

Positive Factors

Low leverage

Sustained low debt provides structural financial flexibility to fund working capital, capex or absorb cyclic downturns without immediate refinancing pressure. This helps the company survive commodity volatility and supports longer-term strategic options despite operating weakness.

Proven profitability in better conditions

Historical profitability shows the core bromine and salt business can generate positive margins when volumes and prices normalize. This implies the business model has inherent margin potential, so recovery in end-market demand could restore sustainable earnings if cost structures are managed.

Vertical integration in brine-to-chemical chain

Owning brine extraction plus downstream processing gives durable supply security and margin capture across the value chain. Control of feedstock reduces input volatility, supports product mix flexibility, and creates higher barriers to entry versus pure traders or toll processors.

Negative Factors

Sharp revenue decline

A sustained ~40% revenue drop materially erodes scale advantages and fixed-cost absorption. Lower volumes weaken pricing power and make prior cost structures unsustainable, increasing the risk that margins remain depressed absent structural demand improvement or decisive cost realignment.

Persistently negative free cash flow

Repeated negative free cash flow signals ongoing cash burn that can exhaust liquidity or force asset disposals, equity raises, or debt incurrence. Over months, this limits ability to invest in maintenance or growth, and raises refinancing and continuity risk if operating losses persist.

Eroding equity base from recurring losses

Significant equity erosion shrinks the capital buffer against losses and increases leverage-like risk even with low reported debt. It reduces creditor confidence, may constrain access to capital, and leaves less cushion for cyclical troughs or investment needs over the coming months.

Gulf Resources Business Overview & Revenue Model

Company Description

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People's Republic of China. It provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. The company also offers crude salt for use as a material in alkali and chlorine alkali production; and for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People's Republic of China.

How the Company Makes Money

Gulf Resources generates revenue through the extraction and sale of bromine, which is a critical component used in flame retardants, drilling fluids, and other industrial chemicals. The company also produces and sells crude salt, often used in industrial and chemical processes. Additionally, they manufacture specialty chemical products that cater to specific market needs. Their revenue streams are bolstered by their strategic location in Shandong Province, which is rich in natural resources, allowing for efficient production and distribution. Partnerships with local and international companies further enhance their market reach and revenue potential.

Gulf Resources Financial Statement Overview

Summary

Operations are the main weakness: revenue fell ~40% in 2024 and profitability flipped deeply negative across gross, operating, and net income. Cash flow quality is also poor with materially negative free cash flow in 2023–2024. The key offset is a low-leverage balance sheet (debt-to-equity ~4–6%), which provides some financial flexibility despite shrinking equity from recurring losses.

Income Statement

Profitability has deteriorated sharply: 2024 revenue fell ~40% year over year (vs. essentially flat in 2023), while gross profit, operating profit, and net income are all deeply negative. Margins are meaningfully worse in 2023–2024 than in 2022 (which was solidly profitable), indicating a major reversal in operating performance and weak cost absorption. The main positive is that the company has demonstrated it can be profitable in better conditions (notably 2022), but the current trajectory is unfavorable.

Balance Sheet

The balance sheet is a relative strength: leverage is low with debt-to-equity around 4–6% across the period, providing financial flexibility. However, large and recurring losses have reduced equity over time (from ~$287M in 2021 to ~$144M in 2024), and returns on equity are strongly negative in 2023–2024—signaling that the asset base is not currently generating acceptable returns despite modest debt.

Cash Flow

Cash flow quality is weak and volatile. Operating cash flow improved to slightly positive in 2024 after a large outflow in 2023, but it remains very small relative to the scale of losses, suggesting limited cash earnings support. Free cash flow is materially negative in both 2023 and 2024 (and also negative in several prior years), pointing to ongoing cash burn and potential reliance on existing balance sheet resources to fund operations/investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.92M	7.66M	30.04M	66.09M	55.03M	28.21M
Gross Profit	-11.43M	-15.97M	-7.59M	25.42M	17.18M	8.79M
EBITDA	-5.54M	-38.22M	-30.03M	43.66M	26.19M	6.60M
Net Income	-27.25M	-58.94M	-61.80M	10.06M	-924.72K	-8.42M
Balance Sheet
Total Assets	164.63M	169.46M	226.67M	292.43M	309.86M	294.04M
Cash, Cash Equivalents and Short-Term Investments	7.74M	10.08M	72.22M	108.23M	95.77M	94.22M
Total Debt	7.98M	8.73M	9.48M	9.68M	10.06M	10.61M
Total Liabilities	22.42M	25.75M	21.42M	20.81M	23.22M	17.01M
Stockholders Equity	142.21M	143.71M	205.25M	271.62M	286.64M	277.02M
Cash Flow
Free Cash Flow	-498.99K	-59.85M	-32.75M	13.59M	-6.78M	-12.41M
Operating Cash Flow	-658.63K	675.07K	-32.75M	51.15M	23.31M	9.31M
Investing Cash Flow	-25.27K	-60.55M	0.00	-37.56M	-30.09M	-21.72M
Financing Cash Flow	-246.92K	-249.24K	-267.81K	-264.86K	-290.60K	-264.98K

Gulf Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GURE, the sentiment is Positive. The current price of 4.13 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.21, and below the 200-day MA of 5.82, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 47.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GURE.

Gulf Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$73.24M	39.68	5.08%	―	0.18%	-54.25%
NTIC	57 Neutral	$86.00M	-268.84	0.02%	1.33%	-0.97%	-99.67%
SNES	48 Neutral	$9.59M	-0.51	-77.79%	―	39.37%	69.81%
LOOP	48 Neutral	$58.49M	-21.57	―	―	11013.00%	39.85%
GURE	43 Neutral	$6.16M	-0.09	-43.37%	―	61.85%	49.02%

Gulf Resources Corporate Events

Gulf Resources Completes Sale of Subsidiary Yuxin Chemical

On December 22, 2025, Gulf Resources, Inc. completed the sale of 100% of the equity in its indirect subsidiary Shouguang Yuxin Chemical Industry Co., Limited to Shandong Rongyuan Pharmaceutical Co., Ltd. for gross consideration of RMB 21.23 million (about US$3.0 million), following approval of the industrial and commercial change registration by the relevant Chinese regulator, which recorded the buyer as the sole shareholder. In connection with the closing of this disposition, the company provided historical financial statements for the year ended December 31, 2024 and the nine months ended September 30, 2025, along with unaudited pro forma condensed consolidated financial information reflecting the impact of the sale on its balance sheet, liabilities and overall financial position as of September 30, 2025.

Gulf Resources Temporarily Suspends Operations for Seasonal Reasons

On December 18, 2025, Gulf Resources, Inc. said it had received a December 15, 2025 notice from the Shouguang Municipal People’s Government Office requiring the company to temporarily suspend certain operations in Shouguang City for a designated period. The company indicated that this seasonal halt is intended to support the local government’s objectives for orderly brine extraction, more efficient use and development of brine resources, and environmental protection, and noted that bromine demand typically weakens around Chinese New Year while crude salt processing becomes more difficult in winter, suggesting the suspension may have limited commercial impact during this slower operating season.

Gulf Resources Sells Yuxin Chemical for RMB 21.2M

On December 10, 2025, Gulf Resources‘ subsidiary, Shouguang City Haoyuan Chemical Company Limited, entered into an equity transfer agreement to sell 100% of its equity interests in Shouguang Yuxin Chemical Industry Co., Limited to Shandong Rongyuan Pharmaceutical Co., Ltd. for RMB 21.2 million. This strategic decision follows the prolonged suspension of operations at the Yuxin Chemical facility, which negatively impacted Gulf Resources’ performance. The sale is expected to relieve the company of operational burdens associated with the facility, allowing it to concentrate resources on more profitable business segments.

Gulf Resources Regains Nasdaq Compliance, Avoids Hearing

On December 1, 2025, Gulf Resources, Inc. announced that it had regained compliance with the Nasdaq’s minimum bid price requirement, allowing its securities to continue being listed and traded on the Nasdaq Capital Market. This compliance achievement led to the cancellation of a scheduled hearing before the Nasdaq Hearings Panel, marking a significant operational milestone for the company.

Gulf Resources Files Quarterly Report with SEC

On November 19, 2025, Gulf Resources, Inc. filed its quarterly report for the quarter ended September 30, 2025, with the SEC. This filing is a standard procedure for public companies to disclose financial performance and other relevant information to stakeholders.

Gulf Resources Updates on Nasdaq Delisting Appeal

On November 12, 2025, Gulf Resources, Inc. announced an update on its appeal process regarding Nasdaq’s delisting determination. Following a 1-for-10 reverse stock split effective October 27, 2025, the company’s stock maintained a closing bid price above $1.00 for over ten consecutive trading days as of November 10, 2025. Consequently, the company requested to cancel the scheduled December 9, 2025, Nasdaq hearing, pending review and confirmation by the Listing Analyst. Despite the suspension of its stock trading on November 11, 2025, Gulf Resources is preparing for the hearing and remains committed to complying with Nasdaq’s requirements to resume trading.

Gulf Resources Appeals Nasdaq Delisting Decision

On November 4, 2025, Gulf Resources received a delist determination letter from Nasdaq due to non-compliance with Listing Rule 5550(a)(2). The company has taken steps to address this by implementing a one-for-ten reverse stock split on October 27, 2025, and filing an appeal on November 7, 2025, to present a compliance plan to the Nasdaq Hearings Panel. The outcome of the appeal and the company’s ability to regain compliance remain uncertain.