Gulf Resources (GURE) AI Stock Analysis

• Market Cap: $5.87M
• Dividend Yield: N/A
• Average Volume (3M): 589.22K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.67
• 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: 1.57
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: -0.81
• Enterprise Value/Ebitda: -1.66
• 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: 44 Neutral
• Price Target: $3.50 ▼(-5.41% Downside)

The score is held down primarily by sharply deteriorated financial results (large revenue decline, deep losses, and negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). Low leverage and some positive corporate actions (Nasdaq compliance regained and asset sale) provide partial offset, while valuation is constrained by ongoing losses and no dividend support.

Positive Factors

Strategic Land Acquisition

This strategic land acquisition positions Gulf Resources for long-term growth in bromine and crude salt production, potentially enhancing market share and revenue streams over the next several years.

Bromine Price Recovery

The recovery in bromine prices could significantly boost Gulf Resources' revenue, given its reliance on bromine sales. This trend may improve profitability and cash flow in the medium term.

Flood Prevention Project Completion

The completion of the flood prevention project is crucial for operational stability and capacity expansion, enabling the reopening of key bromine factories, which may enhance production efficiency and output.

Negative Factors

Revenue Decline

The significant decline in revenue indicates challenges in maintaining market competitiveness and operational efficiency, which may hinder long-term growth and profitability.

Cash Position Decreased

The drastic reduction in cash reserves limits Gulf Resources' financial flexibility, potentially affecting its ability to invest in growth opportunities and manage operational expenses effectively.

High Operational Losses

Persistent operational losses, particularly in the bromine segment, highlight inefficiencies and cost management issues that may undermine the company's financial health and strategic initiatives.

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

Gulf Resources is facing significant financial challenges with declining revenues and margins, impacting overall profitability. While the company maintains a manageable debt level, its cash flow situation is concerning, with large cash outflows in recent years. Overall, the company must address its revenue and profitability issues to improve its financial health.

Income Statement

Gulf Resources has experienced declining revenue from $66 million in 2022 to $7.6 million in 2024, indicating a severe downturn. Gross profit margin has been negative for the past two years, with the latest at -208.4%, reflecting significant cost challenges. The net profit margin has also been negative, reaching -769.1% in 2024, showing substantial losses. These metrics point to operational and profitability issues.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio of 0.06 in 2024, suggesting prudent debt management. However, the equity ratio decreased from 92.3% in 2022 to 84.8% in 2024, indicating some weakening in financial stability. Despite these challenges, the company has maintained a positive equity position, but declining equity could be a concern.

Cash Flow

The free cash flow has deteriorated from a positive $13.6 million in 2022 to a negative $59.9 million in 2024, indicating significant cash outflows. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. These factors suggest struggles in maintaining liquidity and cash management.

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: Neutral
• Last Price: 3.70
• 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 Neutral. The current price of 3.7 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.23, and below the 200-day MA of 6.05, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$87.45M	47.39	5.08%	―	0.18%	-54.25%
NTIC	56 Neutral	$82.39M	-257.86	0.02%	1.33%	-0.97%	-99.67%
SNES	49 Neutral	$11.72M	-0.62	-77.79%	―	39.37%	69.81%
LOOP	47 Neutral	$53.33M	-4.53	―	―	11013.00%	39.85%
GURE	44 Neutral	$5.87M	-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.

Gulf Resources Announces Reverse Stock Split

Gulf Resources, Inc. announced a 1-for-10 reverse stock split of its common stock, effective October 27, 2025, to regain compliance with Nasdaq’s minimum bid price requirement. This move will reduce the number of shares outstanding from approximately 13.63 million to 1.36 million, with stockholders’ positions adjusted automatically without requiring further action.