MeritValue

GULF RESOURCES, INC.

GUREdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

GULF RESOURCES, INC. earns about -13% on invested capital, and has bought back 89% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2020FY 2021FY 2022FY 2023FY 2024
Revenue$28.2M1$55M2$66.1M3$30M4$7.66M4
Net income−$8.42M5−$924,7186$10.1M7−$61.8M8−$59.9M8
Operating cash flow$9.31M9$23.3M10$51.1M11−$32.8M12$675,82612
Capital expenditure$21.7M13$30.1M14$37.6M15—$28.9M16
Free cash flow (derived)−$12.4M9−$6.78M10$13.6M11—−$28.2M12
Total debt—————
Cash & equivalents$94.2M17$95.8M18$108.2M19$72.2M19$10.1M19
Diluted shares10.0M10.5M10.0M1.1M1.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1,308.33
your share of equity
Profit it earned you last year
−$548.76
Free cash flow it threw off
−$258.78
Debt you’d be carrying
—

10 shares is a claim on $1,308.33 of net worth that earned you −$548.76 and generated −$258.78 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-13% avg · 5y
FY20 -4%FY21 1%FY22 6%FY23 -35%FY24 -35%

It earned an average -13% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−89% shares · 5y

Share count is down 89% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2020-12-31 · accession 0001193805-22-000613 (Revenues)
  2. 10-K · period ending 2021-12-31 · accession 0001193805-23-000424 (Revenues)
  3. 10-K · period ending 2022-12-31 · accession 0001193805-24-001184 (Revenues)
  4. 10-K/A · period ending 2023-12-31 · accession 0001193805-26-001001 (Revenues)
  5. 10-K · period ending 2020-12-31 · accession 0001193805-22-000613 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001193805-23-000424 (NetIncomeLoss)
  7. 10-K · period ending 2022-12-31 · accession 0001193805-24-001184 (NetIncomeLoss)
  8. 10-K/A · period ending 2023-12-31 · accession 0001193805-26-001001 (NetIncomeLoss)
  9. 10-K · period ending 2020-12-31 · accession 0001193805-22-000613 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001193805-23-000424 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2022-12-31 · accession 0001193805-24-001184 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K/A · period ending 2023-12-31 · accession 0001193805-26-001001 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2020-12-31 · accession 0001193805-22-000613 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0001193805-23-000424 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2022-12-31 · accession 0001193805-24-001184 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K/A · period ending 2024-12-31 · accession 0001193805-26-001001 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2020-12-31 · accession 0001193805-23-000424 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  18. 10-K · period ending 2021-12-31 · accession 0001193805-24-001184 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  19. 10-K/A · period ending 2022-12-31 · accession 0001193805-26-001001 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)