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Gulf ResourcesFRA:R29 57 Gross Margin % is 11.59% as of Sep. 2025, which is 67% below its 10-year median of 34.67. GuruFocus rates FRA:R29 with a GF Score™ of 57/100 and a GF Value™ of €7.99. The stock has 3 warning signs investors should review. Among 1,559 Chemicals companies, Gulf Resources ranks worse than 99.42% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Gulf Resources had a gross margin of 11.59% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Gulf Resources Gross Margin % Related Terms
Gulf Resources Gross Margin % Historical Data
* Premium members only.
The historical data trend for Gulf Resources's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Chemicals subindustry, Gulf Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gulf Resources Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Gulf Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gulf Resources's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Gulf Resources (FRA:R29) has a Gross Margin % of 11.59% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Gulf Resources and its competitors. This is 67% below median its historical median of 34.67. According to the industry distribution chart, Gulf Resources ranks #1550 out of 1559 companies in the Chemicals industry, placing it in the top 99.4%.
Is Gulf Resources' Gross Margin % too high?
Gulf Resources' current Gross Margin % of 11.59% is 67% below median its 10-year median of 34.67. The Chemicals industry median Gross Margin % is 23.52. Gulf Resources' value of 11.59% is 50.7% below this industry median. Based on the distribution chart, Gulf Resources ranks #1550 out of 1559 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Gulf Resources has a GF Score™ of 57/100, reflecting its overall financial health beyond just this single metric.
How does Gulf Resources' Gross Margin % compare to ORGN and DOW?
According to the Chemicals industry distribution chart, Gulf Resources ranks #1550 out of 1559 companies for Gross Margin %. This places Gulf Resources in the lower half of its industry. The industry median Gross Margin % is 23.52. Gulf Resources' value of 11.59% is 50.7% below this benchmark. While the company's 10-year median is 34.67 vs. the industry median of 23.52, Gulf Resources has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.52, based on 1,559 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gulf Resources's current Gross Margin % of 11.59% is 50.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Gulf Resources and its competitors. For the Chemicals industry, the median Gross Margin % is 23.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Resources's current Gross Margin % is 11.59%, which is 67% below median its own 10-year median of 34.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Resources stock overvalued right now?
Gulf Resources (FRA:R29) has a current Gross Margin % of 11.59%. The stock's GF Value™ is €7.99, compared to a current price of €4.16 — trading 47.9% below its estimated fair value. The current Gross Margin % is 11.59%, which is 67% below median its 10-year median of 34.67 and 50.7% below the Chemicals industry median of 23.52. Gulf Resources' overall GF Score™ is 57/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Gulf Resources (FRA:R29), the current Gross Margin % is 11.59% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gulf Resources (FRA:R29) Overvalued in 2026?
Based on GuruFocus' analysis, Gulf Resources stock appears to be undervalued.
The current stock price of €4.16 is trading 47.9% below its estimated GF Value™ of €7.99.
Key valuation signals for FRA:R29:
Gross Margin %: 11.59% (67% below median its 10-year median of 34.67)
GF Value™: €7.99 vs. price of €4.16 (47.9% below fair value)
Industry Position: 50.7% below the Chemicals median (#1550 of 1559)
No single metric tells the full story. See the FRA:R29 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gulf Resources Inc is a holding company engaged in the manufacture and trade of bromine and crude salt, and natural gas; manufactures and sells chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals, and manufactures and sells materials for human and animal antibiotics. It operates in four segments: Bromine, Crude Salt, Chemical Products and Natural Gas. It derives maximum revenue from the Bromine segment which is commonly used in brominated flame retardants, fumigants, water purification compounds, dyes, medicines and disinfectants.
57GF Score
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