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Gulf ResourcesGURE -2.86%53 Net-Net Working Capital is $-11.68 as of Sep. 2025. GuruFocus rates GURE with a GF Score™ of 53/100 and a GF Value™ of $6.77 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 585 Chemicals companies, Gulf Resources ranks worse than 170940% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Gulf Resources's Net-Net Working Capital for the quarter that ended in Sep. 2025 was $-11.68.
The industry rank for Gulf Resources's Net-Net Working Capital or its related term are showing as below:
GURE's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.95 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Gulf Resources (NAS:GURE) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Gulf Resources Net-Net Working Capital Related Terms
Gulf Resources Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Gulf Resources's Net-Net Working Capital 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.
GURE vs CNEY, GLGI, BGLC: Net-Net Working Capital Comparison
For the Chemicals subindustry, Gulf Resources's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Gulf Resources's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Gulf Resources's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-11.68 mean?
Gulf Resources (GURE) has a Net-Net Working Capital of $-11.68 as of Sep. 2025. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Gulf Resources According to the industry distribution chart, Gulf Resources ranks #999999 out of 585 companies in the Chemicals industry.
Is Gulf Resources' Net-Net Working Capital too high?
Gulf Resources' current Net-Net Working Capital is $-11.68. Based on the distribution chart, Gulf Resources ranks #999999 out of 585 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Gulf Resources has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gulf Resources' Net-Net Working Capital compare to CNEY and GLGI?
According to the Chemicals industry distribution chart, Gulf Resources ranks #999999 out of 585 companies for Net-Net Working Capital. This places Gulf Resources in the lower half of its industry. The industry median Net-Net Working Capital is 7.95. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Chemicals company?
The median Net-Net Working Capital among Chemicals companies is 7.95, based on 585 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Gulf Resources For the Chemicals industry, the median Net-Net Working Capital is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Resources's current Net-Net Working Capital is $-11.68. 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?
Based on GuruFocus' analysis, Gulf Resources (GURE) is currently considered Possible Value Trap. The stock's GF Value™ is $6.77, compared to a current price of $3.06 — trading 54.8% below its estimated fair value. The current Net-Net Working Capital is $-11.68. Gulf Resources' overall GF Score™ is 53/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Gulf Resources (GURE), the current Net-Net Working Capital is $-11.68 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 (GURE) Overvalued in 2026?
Based on GuruFocus' analysis, Gulf Resources stock appears to be undervalued.
The current stock price of $3.06 is trading 54.8% below its estimated GF Value™ of $6.77.
GuruFocus considers Gulf Resources to be Possible Value Trap.
Key valuation signals for GURE:
Net-Net Working Capital: $-11.68
GF Value™: $6.77 vs. price of $3.06 (54.8% below fair value)
No single metric tells the full story. See the GURE 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.
53GF Score
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