GWA Group And 2 Other ASX Penny Stocks To Watch

The Australian market has faced turbulence recently, with the ASX200 closing down 1.8% amid concerns over U.S. tariffs on Chinese imports and fears of a global trade war, contributing to a four-year low for the Aussie dollar. In such volatile conditions, investors often seek opportunities that offer both affordability and potential growth, which is where penny stocks come into play. While the term "penny stocks" may seem outdated, these smaller or newer companies can still present surprising value and financial resilience worth exploring further.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.79	A$143.12M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.575	A$66.82M	★★★★★★
SHAPE Australia (ASX:SHA)	A$3.00	A$245.42M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.49	A$310.07M	★★★★★☆
GTN (ASX:GTN)	A$0.54	A$108.01M	★★★★★★
MaxiPARTS (ASX:MXI)	A$1.88	A$106.21M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.935	A$327.26M	★★★★★★
IVE Group (ASX:IGL)	A$2.19	A$345.4M	★★★★☆☆
SKS Technologies Group (ASX:SKS)	A$1.59	A$247.67M	★★★★★★
Centrepoint Alliance (ASX:CAF)	A$0.31	A$63.64M	★★★★★☆

Click here to see the full list of 1,030 stocks from our ASX Penny Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

GWA Group (ASX:GWA)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: GWA Group Limited is involved in the research, design, manufacture, importation, and marketing of building fixtures and fittings for residential and commercial properties in Australia, New Zealand, and internationally with a market cap of A$665.66 million.

Operations: The company generates revenue of A$413.49 million from its Water Solutions segment.

Market Cap: A$665.66M

GWA Group Limited, with a market cap of A$665.66 million, is involved in the building fixtures sector and generates significant revenue from its Water Solutions segment. The company has high-quality past earnings and a satisfactory net debt to equity ratio of 31.4%, though its short-term assets don't cover long-term liabilities. Despite negative earnings growth last year and declining profits over five years, GWA's interest payments are well covered by EBIT, indicating financial stability. The stock trades below estimated fair value but faces challenges with low return on equity and an inexperienced board following recent leadership changes.

• Click here to discover the nuances of GWA Group with our detailed analytical financial health report.
• Gain insights into GWA Group's outlook and expected performance with our report on the company's earnings estimates.

SelfWealth (ASX:SWF)

Simply Wall St Financial Health Rating: ★★★★★★

Overview: SelfWealth Limited provides online share trading services across the Australian, United States, and Hong Kong stock exchanges with a market cap of A$61.14 million.

Operations: The company generates revenue primarily through its brokerage services, amounting to A$28.12 million.

Market Cap: A$61.14M

SelfWealth Limited, with a market cap of A$61.14 million, operates in the online share trading space across multiple stock exchanges. Despite recent volatility in its share price, the company has demonstrated earnings growth of 34.7% over the past year, surpassing industry averages. It remains debt-free and maintains a healthy balance sheet with short-term assets exceeding liabilities. However, SelfWealth faces challenges with low return on equity at 15.6% and an inexperienced board with an average tenure of 1.8 years. Recent M&A interest from Bell Financial Group highlights potential strategic shifts amidst fluctuating profitability and shareholder considerations.

• Click here and access our complete financial health analysis report to understand the dynamics of SelfWealth.
• Assess SelfWealth's previous results with our detailed historical performance reports.

Wiseway Group (ASX:WWG)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Wiseway Group Limited, along with its subsidiaries, offers logistics and freight forwarding services across Australia, New Zealand, China, Singapore, and the United States with a market cap of A$21.76 million.

Operations: The company generates revenue of A$112.26 million from its freight forwarding services.

Market Cap: A$21.76M

Wiseway Group Limited, with a market cap of A$21.76 million, has recently achieved profitability, though its earnings growth over the past five years remains negative. The company's share price has been highly volatile in recent months. Debt levels have risen significantly over five years; however, operating cash flow sufficiently covers debt obligations. Despite low return on equity at 3.2%, Wiseway is trading well below estimated fair value and boasts high-quality earnings. Short-term assets fall short of covering liabilities but exceed long-term liabilities. The management team is relatively new with an average tenure of 1.9 years, while the board is more experienced at 3.2 years average tenure.

• Unlock comprehensive insights into our analysis of Wiseway Group stock in this financial health report.
• Evaluate Wiseway Group's historical performance by accessing our past performance report.

Where To Now?

• Take a closer look at our ASX Penny Stocks list of 1,030 companies by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• 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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