Stock Analysis
The Australian market recently saw a slight decline, with the ASX200 closing down by 0.13%, influenced by weaker performances in mining, gold, and energy sectors. Despite these challenges, investors continue to seek opportunities in diverse areas of the market. Penny stocks, often representing smaller or emerging companies, remain a compelling option for those looking to explore potential growth at lower price points. These stocks can offer significant upside when backed by strong financials and fundamentals.
Top 10 Penny Stocks In Australia
| Name | Share Price | Market Cap | Financial Health Rating |
| Embark Early Education (ASX:EVO) | A$0.79 | A$139.45M | ★★★★☆☆ |
| Helloworld Travel (ASX:HLO) | A$1.92 | A$306.1M | ★★★★★★ |
| Austin Engineering (ASX:ANG) | A$0.55 | A$337.98M | ★★★★★☆ |
| MaxiPARTS (ASX:MXI) | A$1.87 | A$103.44M | ★★★★★★ |
| LaserBond (ASX:LBL) | A$0.62 | A$72.68M | ★★★★★★ |
| SHAPE Australia (ASX:SHA) | A$2.77 | A$225.52M | ★★★★★★ |
| Navigator Global Investments (ASX:NGI) | A$1.665 | A$784.13M | ★★★★★☆ |
| Perenti (ASX:PRN) | A$1.185 | A$1.08B | ★★★★★★ |
| West African Resources (ASX:WAF) | A$1.535 | A$1.84B | ★★★★★★ |
| Big River Industries (ASX:BRI) | A$1.34 | A$114.39M | ★★★★★☆ |
Click here to see the full list of 1,035 stocks from our ASX Penny Stocks screener.
Let's explore several standout options from the results in the screener.
Emeco Holdings (ASX:EHL)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Emeco Holdings Limited operates in Australia, offering surface and underground mining equipment rental, complementary equipment, and mining services, with a market cap of A$390.90 million.
Operations: The company's revenue is derived from three main segments: Rental generating A$544.75 million, Workshops contributing A$282.41 million, and Pit N Portal providing A$111.77 million.
Market Cap: A$390.9M
Emeco Holdings has demonstrated consistent profitability growth over the past five years, with a notable 27.4% earnings increase last year, surpassing industry averages. The company maintains a satisfactory net debt to equity ratio of 32%, and its interest payments are well covered by EBIT at 4.7 times. Despite short-term assets exceeding liabilities, long-term liabilities remain uncovered by short-term assets. Trading significantly below estimated fair value, Emeco's shares have not been meaningfully diluted recently and are considered good value compared to peers. Recent board changes include appointing Ian Macliver as Chairman, potentially enhancing strategic direction in mining services.
- Click here to discover the nuances of Emeco Holdings with our detailed analytical financial health report.
- Gain insights into Emeco Holdings' outlook and expected performance with our report on the company's earnings estimates.
Euroz Hartleys Group (ASX:EZL)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Euroz Hartleys Group Limited is a diversified financial services company offering stockbroking, corporate finance, funds management, investment advice, financial advisory, and wealth management services to private, institutional, and corporate clients in Australia with a market cap of A$125.76 million.
Operations: The company's revenue is primarily derived from Private Wealth services at A$49.95 million, followed by Wholesale operations contributing A$38.58 million, and Funds Management generating A$0.35 million.
Market Cap: A$125.76M
Euroz Hartleys Group Limited, with a market cap of A$125.76 million, has experienced a challenging financial year marked by declining earnings and profit margins. The company's net income fell to A$5.47 million from A$9.34 million the previous year, influenced by a significant one-off loss of A$4.6 million. Despite being debt-free and having strong short-term asset coverage over liabilities, Euroz's Return on Equity remains low at 4.8%. Recent leadership changes include Tim Bunney's appointment as Managing Director, which may influence future strategic direction amidst the current financial challenges and dividend sustainability concerns.
- Dive into the specifics of Euroz Hartleys Group here with our thorough balance sheet health report.
- Assess Euroz Hartleys Group's previous results with our detailed historical performance reports.
Integrated Research (ASX:IRI)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Integrated Research Limited designs, develops, implements, and sells systems and applications management software for business-critical computing and unified communication and payment networks, with a market cap of A$108.19 million.
Operations: The company generates revenue of A$83.29 million from its software and programming segment.
Market Cap: A$108.19M
Integrated Research Limited, with a market cap of A$108.19 million, has recently turned profitable, reporting a net income of A$27.13 million for the year ending June 30, 2024. Despite past earnings declines and an inexperienced board and management team, the company benefits from being debt-free and having strong short-term asset coverage over liabilities. It trades at a favorable price-to-earnings ratio of 4.1x compared to the Australian market average of 19.5x and boasts a high return on equity at 30.7%. Recent leadership changes include Ian Lowe's appointment as CEO to drive growth and innovation forward.
- Unlock comprehensive insights into our analysis of Integrated Research stock in this financial health report.
- Understand Integrated Research's earnings outlook by examining our growth report.
Taking Advantage
- Take a closer look at our ASX Penny Stocks list of 1,035 companies by clicking here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Ready To Venture Into Other Investment Styles?
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- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About ASX:IRI
Integrated Research
Designs, develops, implements, and sells systems and applications management computer software for business-critical computing, and unified communication and payment networks.
