ASX Penny Stocks To Consider In December 2024

As the Australian market braces for a slower start to Week 51, with the ASX 200 expected to open lower amid concerns over rate cuts and shifts in China's economic strategy, investors are keenly observing how these factors might influence their portfolios. Penny stocks, despite being an old term, continue to capture attention as they often represent smaller or newer companies with potential for growth at attractive price points. When these stocks are backed by strong financials and sound fundamentals, they can offer opportunities that may appeal to those looking for hidden value in quality investments.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.755	A$138.53M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.55	A$64.47M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.505	A$313.17M	★★★★★☆
SHAPE Australia (ASX:SHA)	A$2.80	A$232.15M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.935	A$315.05M	★★★★★★
MaxiPARTS (ASX:MXI)	A$1.75	A$96.8M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.60	A$784.13M	★★★★★☆
SKS Technologies Group (ASX:SKS)	A$1.59	A$215.17M	★★★★★★
Vita Life Sciences (ASX:VLS)	A$1.84	A$103.2M	★★★★★★
Servcorp (ASX:SRV)	A$4.86	A$479.51M	★★★★☆☆

Click here to see the full list of 1,049 stocks from our ASX Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

CleanSpace Holdings (ASX:CSX)

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

Overview: CleanSpace Holdings Limited designs, manufactures, and sells respiratory protection products and services for healthcare and industrial markets globally, with a market cap of A$30.80 million.

Operations: The company generates revenue of A$15.72 million from its respiratory products segment.

Market Cap: A$30.8M

CleanSpace Holdings, with a market cap of A$30.80 million, is navigating challenges typical of penny stocks. Despite generating A$15.72 million in revenue from its respiratory products, the company remains unprofitable and has seen losses increase at a significant rate over the past five years. However, it holds more cash than debt and has reduced its debt-to-equity ratio substantially over time. The company's short-term assets exceed both short-term and long-term liabilities, providing some financial stability. Nonetheless, volatility remains high and management's inexperience could affect strategic direction as they work towards profitability.

• Dive into the specifics of CleanSpace Holdings here with our thorough balance sheet health report.
• Learn about CleanSpace Holdings' historical performance here.

MaxiPARTS (ASX:MXI)

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

Overview: MaxiPARTS Limited, along with its subsidiaries, distributes and sells commercial truck and trailer parts in Australia, with a market cap of A$96.80 million.

Operations: The company generates revenue of A$243.88 million from its Maxiparts segment, which involves the distribution and sale of commercial truck and trailer parts in Australia.

Market Cap: A$96.8M

MaxiPARTS Limited, with a market cap of A$96.80 million, presents a mixed picture typical of Australian penny stocks. The company has achieved profitability over the past five years with earnings growing significantly at 61.3% annually, yet recent negative earnings growth (-23.7%) raises concerns about sustainability. Its financial health is supported by short-term assets exceeding liabilities and a reduced debt-to-equity ratio from 38.7% to 28.9%. While trading below its estimated fair value and offering good relative value compared to peers, challenges include unstable dividend history and low return on equity (5.5%). Management's average tenure suggests some experience in navigating these complexities.

• Take a closer look at MaxiPARTS' potential here in our financial health report.
• Understand MaxiPARTS' earnings outlook by examining our growth report.

Verbrec (ASX:VBC)

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

Overview: Verbrec Limited offers engineering, asset management, training, and infrastructure services to the mining, energy, defense, and infrastructure sectors across Australia, New Zealand, Papua New Guinea, and the Pacific Islands with a market cap of A$42.10 million.

Operations: The company generates revenue primarily from its Engineering segment, which accounts for A$86.48 million, and its Training segment, contributing A$6.87 million.

Market Cap: A$42.1M

Verbrec Limited, with a market cap of A$42.10 million, exemplifies the volatility and potential of Australian penny stocks. The company has recently become profitable, making it challenging to compare past growth rates. Its financial stability is underscored by short-term assets exceeding both long-term and short-term liabilities, while its debt is well-managed with satisfactory coverage by operating cash flow. Despite significant insider selling in recent months, Verbrec's return on equity is high at 24.8%, indicating efficient use of equity capital. Trading significantly below estimated fair value suggests potential for upside if operational improvements continue.

• Navigate through the intricacies of Verbrec with our comprehensive balance sheet health report here.
• Assess Verbrec's future earnings estimates with our detailed growth reports.

Next Steps

• Dive into all 1,049 of the ASX Penny Stocks we have identified 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.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com