ASX Penny Stocks To Watch In January 2025

The Australian market is poised for a positive start, with ASX 200 futures indicating a slight rise as global markets react to recent developments in U.S. economic policy. In this context, investors are turning their attention to smaller companies that may offer unique opportunities for growth and value. While the term "penny stocks" might seem outdated, it still describes emerging or less-established companies that can provide intriguing prospects when backed by strong financials.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.775	A$142.2M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.575	A$67.4M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.535	A$331.78M	★★★★★☆
SHAPE Australia (ASX:SHA)	A$2.91	A$241.27M	★★★★★★
GTN (ASX:GTN)	A$0.555	A$108.99M	★★★★★★
MaxiPARTS (ASX:MXI)	A$1.95	A$107.87M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.975	A$321.56M	★★★★★★
Vita Life Sciences (ASX:VLS)	A$2.00	A$111.85M	★★★★★★
Centrepoint Alliance (ASX:CAF)	A$0.315	A$62.65M	★★★★★☆
IVE Group (ASX:IGL)	A$2.12	A$328.36M	★★★★☆☆

Click here to see the full list of 1,027 stocks from our ASX Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Biome Australia (ASX:BIO)

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

Overview: Biome Australia Limited focuses on the development, commercialization, and marketing of live biotherapeutics and complementary medicines both in Australia and internationally, with a market cap of A$112.85 million.

Operations: The company's revenue segment is derived entirely from its Innovative Evidence-Based Products Linking the Gut and Human Health, generating A$13.01 million.

Market Cap: A$112.85M

Biome Australia, with a market cap of A$112.85 million, focuses on innovative biotherapeutics and complementary medicines, generating A$13.01 million in revenue. Despite being unprofitable with a negative return on equity of -57.52%, the company has reduced its losses over the past five years by 6.4% annually and is expected to grow earnings by 89.04% per year according to forecasts. The appointment of Geoffrey Sam OAM as Non-Executive Director adds significant industry expertise to support growth initiatives and optimize manufacturing processes for local and international expansion, while maintaining a stable financial position with more cash than total debt.

• Navigate through the intricacies of Biome Australia with our comprehensive balance sheet health report here.
• Examine Biome Australia's earnings growth report to understand how analysts expect it to perform.

Change Financial (ASX:CCA)

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

Overview: Change Financial Limited offers a payments management platform and payment testing solutions across South East Asia, Oceania, Latin America, the United States, and internationally, with a market cap of A$44.65 million.

Operations: The company generates revenue of $10.64 million from its development and provision of card payments software and services.

Market Cap: A$44.65M

Change Financial Limited, with a market cap of A$44.65 million, generates US$10.64 million in revenue from its card payments software and services. The company is debt-free, having reduced its debt from a high level five years ago, but remains unprofitable with a negative return on equity of -43.72%. While short-term liabilities exceed assets by US$0.6 million, the company has sufficient cash runway to sustain operations for over a year based on current free cash flow trends. Despite an inexperienced board averaging 2.7 years in tenure, management is seasoned with 4.3 years' experience and forecasts indicate significant earnings growth potential at 99.72% annually.

• Click here and access our complete financial health analysis report to understand the dynamics of Change Financial.
• Gain insights into Change Financial's outlook and expected performance with our report on the company's earnings estimates.

Johns Lyng Group (ASX:JLG)

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

Overview: Johns Lyng Group Limited offers integrated building services across Australia, New Zealand, and the United States, with a market capitalization of A$1.10 billion.

Operations: The company's revenue is primarily generated from Insurance Building and Restoration Services (A$1.08 billion), supplemented by Commercial Building Services (A$88.17 million) and Commercial Construction (A$23.59 million).

Market Cap: A$1.1B

Johns Lyng Group Limited, with a market cap of A$1.10 billion, primarily generates revenue from Insurance Building and Restoration Services (A$1.08 billion). Despite earnings growth of 2.5% last year lagging the construction industry's 24.3%, the company has shown strong financial health with short-term assets exceeding both short and long-term liabilities and debt well covered by operating cash flow (85.5%). The company trades at a significant discount to its estimated fair value, though its Return on Equity is low at 13.7%. Analysts expect earnings to grow annually by 11.48%, indicating potential future growth prospects.

• Take a closer look at Johns Lyng Group's potential here in our financial health report.
• Explore Johns Lyng Group's analyst forecasts in our growth report.

Key Takeaways

• Investigate our full lineup of 1,027 ASX Penny Stocks right here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Ready For A Different Approach?

• 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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