Forensic Analysis · Materials / Mining & Chemicals · as of Aug 30, 2026

Gulf Resources, Inc. (GURE)

A forensic read on Gulf Resources, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Safe

Financial health

5.6

Distress distance (no retained-earnings input)

Clean

Earnings quality

Forensic signals

-39.4%

ROE

231.8%

Revenue growth

The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Gulf Resources, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 5.6, placing it in the Safe zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-5.3%

FY2025

Return on invested capital. Return on invested capital is -5.3% in the latest fiscal year and slipping from 4% — well below its ~8% cost of capital, and it has been across FY2017–FY2025, so reinvested dollars have not been earning their keep.

4% of rev

FY2025

Stock-based comp load. Stock-based compensation ran 4% of revenue in FY2025 — about $0.70 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 8.3% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.

stopped

FY2015→FY2016

Shareholder returns — halted. Capital returns have STOPPED — $37,713 of buybacks + dividends in FY2015, but ~$0 in FY2016. A halt usually means the company is conserving cash.

n/m (stock split)

FY2018–FY2025

Share count (stock split). Diluted share count changed -97% over the last 7 years to FY2025, but that includes a large one-time change around FY2023 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw -39.9%/yr figure isn't a real buyback/dilution read here.

Key fundamentals

Latest Revenue$25.4M

Revenue Growth YoY+231.8%

Revenue CAGR (3yr)-27.3%

Net Margin-172.8%

Free Cash Flow-$1.0M

Return on Equity-39.4%

Debt / Equity0.03x

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Data from SEC EDGAR public filings · metrics as of Aug 30, 2026. Forensic signals flag probability, not certainty.