NasdaqGS:GURE

Stock Analysis Report

Executive Summary

Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Gulf Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GURE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

GURE

-2.6%

US Chemicals

-1.3%

US Market


1 Year Return

-39.8%

GURE

-2.1%

US Chemicals

22.0%

US Market

Return vs Industry: GURE underperformed the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: GURE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GUREIndustryMarket
7 Day6.0%-2.6%-1.3%
30 Day31.5%-2.9%1.8%
90 Day4.1%2.4%9.3%
1 Year-39.8%-39.8%13.3%-2.1%24.6%22.0%
3 Year-67.3%-67.3%28.9%4.4%49.2%39.6%
5 Year-59.7%-59.7%48.5%16.5%77.9%58.3%

Price Volatility Vs. Market

How volatile is Gulf Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gulf Resources undervalued compared to its fair value and its price relative to the market?

0.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GURE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GURE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GURE is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: GURE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GURE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GURE is good value based on its PB Ratio (0.1x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Gulf Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.9%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gulf Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gulf Resources performed over the past 5 years?

-57.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GURE is currently unprofitable.

Growing Profit Margin: GURE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GURE is unprofitable, and losses have increased over the past 5 years at a rate of -57% per year.

Accelerating Growth: Unable to compare GURE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GURE is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-17%).


Return on Equity

High ROE: GURE has a negative Return on Equity (-21.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gulf Resources's financial position?


Financial Position Analysis

Short Term Liabilities: GURE's short term assets ($117.1M) exceed its short term liabilities ($12.2M).

Long Term Liabilities: GURE's short term assets ($117.1M) exceed its long term liabilities ($9.6M).


Debt to Equity History and Analysis

Debt Level: GURE is debt free.

Reducing Debt: GURE had no debt 5 years ago.

Debt Coverage: GURE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GURE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GURE has a high level of physical assets or inventory.

Debt Coverage by Assets: GURE's debt is not covered by short term assets (assets are -6.5935369742231E+16x debt).


Next Steps

Dividend

What is Gulf Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GURE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GURE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GURE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GURE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GURE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Gulf Resources's salary, the management and board of directors tenure and is there insider trading?

10.8yrs

Average management tenure


CEO

Xiaobin Liu (51yo)

10.8yrs

Tenure

US$227,262

Compensation

Mr. Xiaobin Liu has been the Chief Executive Officer, President and Director at Gulf Resources, Inc. since March 10, 2009. Mr. Liu serves as a Vice President of Holley Group Co., Ltd. He has been closely i ...


CEO Compensation Analysis

Compensation vs Market: Xiaobin's total compensation ($USD227.26K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Xiaobin's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

10.8yrs

Average Tenure

51yo

Average Age

Experienced Management: GURE's management team is seasoned and experienced (10.8 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

51yo

Average Age

Experienced Board: GURE's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$119,68606 Sep 19
Naihui Miao
EntityIndividual
Role
Member of the Board of Directors
Secretary
Shares166,230
Max PriceUS$0.72
SellUS$119,68606 Sep 19
Min Li
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares166,230
Max PriceUS$0.72
SellUS$119,68606 Sep 19
Xiaobin Liu
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares166,230
Max PriceUS$0.72
SellUS$3,74006 Sep 19
Shitong Jiang
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,195
Max PriceUS$0.72

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Xiaobin Liu (51yo)

    CEO, President & Director

    • Tenure: 10.8yrs
    • Compensation: US$227.26k
  • Naihui Miao (51yo)

    Secretary

    • Tenure: 14yrs
    • Compensation: US$227.26k
  • Min Li (43yo)

    Chief Financial Officer

    • Tenure: 13.1yrs
    • Compensation: US$227.26k
  • Ganzuo Li (81yo)

    Senior Technical Adviser and General Engineer

    • Ethan Chuang (42yo)

      Vice President of Corporate Development

      • Helen Xu

        IR Director


        Board Members

        • Xiaobin Liu (51yo)

          CEO, President & Director

          • Tenure: 10.8yrs
          • Compensation: US$227.26k
        • Ming Yang (53yo)

          Chairman of the Board

          • Tenure: 14yrs
          • Compensation: US$35.25k
        • Naihui Miao (51yo)

          Secretary

          • Tenure: 14yrs
          • Compensation: US$227.26k
        • Shitong Jiang (51yo)

          Independent Director

          • Tenure: 11.8yrs
          • Compensation: US$3.20k
        • Yang Zou (48yo)

          Independent Director

          • Tenure: 8.8yrs
          • Compensation: US$3.20k
        • Tengfei Zhang (52yo)

          Independent Director

          • Tenure: 8.6yrs
          • Compensation: US$3.20k
        • Shengwei Ma (51yo)

          Independent Director

          • Tenure: 0.08yrs

        Company Information

        Gulf Resources, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Gulf Resources, Inc.
        • Ticker: GURE
        • Exchange: NasdaqGS
        • Founded: 2006
        • Industry: Commodity Chemicals
        • Sector: Materials
        • Market Cap: US$32.393m
        • Shares outstanding: 47.58m
        • Website: https://www.gulfresourcesinc.com

        Number of Employees


        Location

        • Gulf Resources, Inc.
        • Vegetable Building
        • Level 11
        • Shouguang
        • Shandong Province
        • 262700
        • China

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        GURENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2006
        R29ADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2006

        Biography

        Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in the People’s Republic of China. It provides bromine for use in 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, inorganic chemicals, and materials that are used for human and animal antibiotics. Gulf Resources, Inc. is founded in 2006 and is based in Shouguang, the People’s Republic of China. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/24 23:46
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.