Gulf Resources (GURE)
NASDAQ:GURE
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Gulf Resources
(NASDAQ:GURE)
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Rating:43Neutral
Price Target:
$4.50
▲(8.96% Upside)
Action:DowngradedDate: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)
Market Cap
$7.75M
Dividend YieldN/A
Average Volume (3M)589.22K
Price to Earnings (P/E)―
Beta (1Y)-0.47
Revenue Growth61.85%
EPS Growth49.02%
CountryUS
Employees367
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-26.35
Shares Outstanding1,382,114
10 Day Avg. Volume1,545,679
30 Day Avg. Volume589,217
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.04
Price to Sales (P/S)0.80
P/FCF Ratio-0.10
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit-1.16
Enterprise Value/Ebitda-5.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 synthe...
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 ind...
Gulf Resources Earnings Call Summary
Earnings Call Date:Nov 19, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 18, 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
Positive
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
Income Statement
12
Very Negative
Balance Sheet
72
Positive
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.72M | 7.66M | 30.04M | 66.09M | 55.03M | 28.21M |
| Gross Profit | -8.74M | -15.97M | -7.59M | 25.42M | 17.18M | 8.79M |
| EBITDA | -1.92M | -38.22M | -30.03M | 43.66M | 26.19M | 6.60M |
| Net Income | -59.42M | -58.94M | -61.80M | 10.06M | -924.72K | -8.42M |
Balance Sheet | ||||||
| Total Assets | 131.91M | 169.46M | 226.67M | 292.43M | 309.86M | 294.04M |
| Cash, Cash Equivalents and Short-Term Investments | 5.82M | 10.08M | 72.22M | 108.23M | 95.77M | 94.22M |
| Total Debt | 8.06M | 8.73M | 9.48M | 9.68M | 10.06M | 10.61M |
| Total Liabilities | 24.45M | 25.75M | 21.42M | 20.81M | 23.22M | 17.01M |
| Stockholders Equity | 107.46M | 143.71M | 205.25M | 271.62M | 286.64M | 277.02M |
Cash Flow | ||||||
| Free Cash Flow | -2.98M | -59.85M | -32.75M | 13.59M | -6.78M | -12.41M |
| Operating Cash Flow | 5.54M | 675.07K | -32.75M | 51.15M | 23.31M | 9.31M |
| Investing Cash Flow | -8.70M | -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
Neutral
4.13
Price Trends
5.18
Positive
4.67
Positive
5.50
Positive
Market Momentum
0.44
Negative
50.36
Neutral
38.63
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 4.13 is below the 20-day moving average (MA) of 5.48, below the 50-day MA of 5.18, and below the 200-day MA of 5.50, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 38.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $68.91M | -60.48 | 4.98% | ― | 0.18% | -54.25% | |
53 Neutral | $66.22M | -4.53 | 71.64% | ― | 11013.00% | 39.85% | |
51 Neutral | $75.94M | -597.73 | 0.02% | 1.33% | -0.97% | -99.67% | |
45 Neutral | $8.49M | -1.55 | -77.79% | ― | 39.37% | 69.81% | |
43 Neutral | $7.75M | -0.05 | -43.37% | ― | 61.85% | 49.02% |
* Basic Materials Sector Average
GURE
Gulf Resources
5.14
-2.86
-35.75%
FSI
Flexible Solutions International
5.41
1.67
44.65%
NTIC
Northern Technologies International
8.00
0.36
4.77%
SNES
SenesTech
1.60
-0.06
-3.61%
LOOP
Loop Industries
1.37
0.35
34.31%
CNEY
CN Energy Group
0.48
-2.57
-84.38%
Gulf Resources Corporate Events
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Gulf Resources Completes Sale of Subsidiary Yuxin Chemical
Neutral
Dec 29, 2025
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 millio...
Business Operations and Strategy
Gulf Resources Temporarily Suspends Operations for Seasonal Reasons
Neutral
Dec 18, 2025
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 design...
Business Operations and StrategyM&A Transactions
Gulf Resources Sells Yuxin Chemical for RMB 21.2M
Positive
Dec 15, 2025
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 R...
Delistings and Listing ChangesRegulatory Filings and Compliance
Gulf Resources Regains Nasdaq Compliance, Avoids Hearing
Positive
Dec 2, 2025
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 ac...
Financial DisclosuresRegulatory Filings and Compliance
Gulf Resources Files Quarterly Report with SEC
Neutral
Nov 21, 2025
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...
Delistings and Listing ChangesStock Split
Gulf Resources Updates on Nasdaq Delisting Appeal
Neutral
Nov 12, 2025
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 clos...
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Gulf Resources Appeals Nasdaq Delisting Decision
Negative
Nov 7, 2025
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,...
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.