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Gulf Resources (GURE)
NASDAQ:GURE
US Market
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Gulf Resources (GURE) AI Stock Analysis

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GURE

Gulf Resources

(NASDAQ:GURE)

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Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
$4.50
▲(32.35% Upside)
Action:Downgraded
Date:01/28/26
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors

Gulf Resources (GURE) vs. SPDR S&P 500 ETF (SPY)

Gulf Resources Business Overview & Revenue Model

Company Description
Operating in the People's Republic of China, Gulf Resources, Inc. and its various subsidiaries are involved in the production and sale of bromine, crude salt, diverse chemical products, and natural gas. Bromine, one of its key offerings, serves a ...
How the Company Makes Money
Gulf Resources primarily makes money by selling products it produces from brine resources, with revenue generally falling into these main streams: (1) Bromine sales: The company produces bromine from underground brine and sells it to customers (ty...

Gulf Resources Earnings Call Summary

Earnings Call Date:Nov 19, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Negative
The earnings call highlighted strategic investments and potential future gains, particularly in bromine pricing. However, these are overshadowed by significant revenue declines, operational losses, and cash depletion. The company faces challenges in revitalizing its chemical and natural gas segments, delaying potential profitability.
Positive Updates
Bromine Price Recovery
Since the end of the third quarter, bromine prices have increased substantially, indicating potential for increased future revenue.
Negative Updates
Revenue Decline
Quarterly revenues declined by 21.8% to $2.2 million, with a net loss of $3.5 million.
Read all updates
Q3-2024 Updates
Negative
Bromine Price Recovery
Since the end of the third quarter, bromine prices have increased substantially, indicating potential for increased future revenue.
Read all positive updates
Company Guidance
During the Gulf Resources Third Quarter 2024 Earnings Call, several key metrics and issues were discussed. The company reported a decline in revenues to approximately $2.2 million, a 21.8% drop compared to the same period last year, with a net loss of $3.5 million or $0.33 per share. The bromine segment saw a revenue decrease of 68% to $1.6 million, while crude salt revenue declined by 26% to $654,000. For the nine months ending September 30, 2024, revenues were down 74.4% to $5.9 million compared to 2023, with a net loss of $40.6 million or $3.78 per share. The company highlighted significant investments, including $60.5 million in new equipment and $50 million in a flood prevention project, impacting their cash position, which decreased to $11 million from $72.2 million at the end of 2023. Despite these challenges, the management expressed optimism about future bromine price increases and potential returns from recent strategic land acquisitions for crude salt and bromine production.

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
12
Very Negative
Balance Sheet
72
Positive
Cash Flow
18
Very Negative
BreakdownTTMDec 2024Dec 2023Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue20.72M7.66M30.04M66.09M55.03M28.21M
Gross Profit-8.74M-15.97M-7.59M25.42M17.18M8.79M
EBITDA-37.81M-38.22M-30.03M43.66M26.19M6.60M
Net Income-59.42M-58.94M-61.80M10.06M-924.72K-8.42M
Balance Sheet
Total Assets131.91M169.46M226.67M292.43M309.86M294.04M
Cash, Cash Equivalents and Short-Term Investments5.82M10.08M72.22M108.23M95.77M94.22M
Total Debt8.06M8.73M9.48M9.68M10.06M10.61M
Total Liabilities24.45M25.75M21.42M20.81M23.22M17.01M
Stockholders Equity107.46M143.71M205.25M271.62M286.64M277.02M
Cash Flow
Free Cash Flow-2.98M-59.85M-32.75M13.59M-6.78M-12.41M
Operating Cash Flow5.54M675.07K-32.75M51.15M23.31M9.31M
Investing Cash Flow-8.70M-60.55M0.00-37.56M-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
Negative
Last Price3.40
Price Trends
50DMA
3.77
Negative
100DMA
4.25
Negative
200DMA
4.38
Negative
Market Momentum
MACD
-0.20
Positive
RSI
41.51
Neutral
STOCH
37.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GURE, the sentiment is Negative. The current price of 3.4 is above the 20-day moving average (MA) of 3.34, below the 50-day MA of 3.77, and below the 200-day MA of 4.38, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 37.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GURE.

Gulf Resources Risk Analysis

Gulf Resources disclosed 15 risk factors in its most recent earnings report. Gulf Resources reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gulf Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
54
Neutral
$64.25M77.542.11%7.82%-64.59%
54
Neutral
$76.16M-62.36-1.60%0.50%7.70%-139.19%
52
Neutral
$7.16M-0.71-76.20%15.67%75.35%
44
Neutral
$35.30M-2.88142.32%-96.04%9.12%
43
Neutral
$4.17M-0.10-31.41%61.85%48.40%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GURE
Gulf Resources
3.15
-3.05
-49.19%
FSI
Flexible Solutions International
5.03
-0.50
-9.04%
NTIC
Northern Technologies International
8.42
0.87
11.51%
SNES
SenesTech
1.29
-3.40
-72.49%
LOOP
Loop Industries
0.68
-0.95
-58.28%
CNEY
CN Energy Group
0.67
-1.43
-68.00%

Gulf Resources Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Gulf Resources Secures Nasdaq Extension to Regain Compliance
Negative
Jun 30, 2026
On June 25, 2026, Gulf Resources received notice that Nasdaq has accepted its plan to regain compliance with Listing Rule 5250(c)(1), after earlier delinquency notices tied to the company’s failure to timely file its Form 10-K for the year e...
Delistings and Listing ChangesRegulatory Filings and Compliance
Gulf Resources Faces Nasdaq Non-Compliance Over Delayed Filings
Negative
May 29, 2026
On May 26, 2026, Gulf Resources received a delinquency notice from Nasdaq after failing to timely file its Form 10-Q for the quarter ended March 31, 2026, while remaining late on its Form 10-K for the year ended December 31, 2025, leaving the comp...
Financial DisclosuresRegulatory Filings and Compliance
Gulf Resources Delays Quarterly Report Amid SEC-Driven Adjustments
Negative
May 19, 2026
On May 14, 2026, Gulf Resources disclosed it was delayed in filing its Quarterly Report on Form 10-Q for the period ended March 31, 2026, due to the need for additional time to finalize its financial statements and related footnote disclosures. As...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jan 28, 2026