ASX Penny Stocks To Consider In November 2024

Over the last 7 days, the Australian market has remained flat, although it is up 17% over the past year, with earnings expected to grow by 13% per annum in the coming years. Investing in penny stocks—an area that remains relevant despite being a somewhat outdated term—can still offer unique growth opportunities, especially when these stocks are supported by strong financial health. This article will explore several such penny stocks that could combine balance sheet strength with long-term potential for investors seeking under-the-radar opportunities.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
LaserBond (ASX:LBL)	A$0.585	A$68.57M	★★★★★★
Embark Early Education (ASX:EVO)	A$0.80	A$146.79M	★★★★☆☆
Helloworld Travel (ASX:HLO)	A$2.02	A$328.89M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.54	A$334.88M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.87	A$103.44M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.84	A$235.47M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.66	A$813.53M	★★★★★☆
West African Resources (ASX:WAF)	A$1.405	A$1.6B	★★★★★★
Atlas Pearls (ASX:ATP)	A$0.16	A$69.71M	★★★★★★
Servcorp (ASX:SRV)	A$5.00	A$493.33M	★★★★☆☆

Click here to see the full list of 1,043 stocks from our ASX Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

NRW Holdings (ASX:NWH)

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

Overview: NRW Holdings Limited, with a market cap of A$1.81 billion, offers diversified contract services to the resources and infrastructure sectors in Australia through its subsidiaries.

Operations: The company's revenue is derived from its Mining segment at A$1.52 billion, MET at A$791.81 million, and Civil at A$655.46 million.

Market Cap: A$1.81B

NRW Holdings Limited, with a market cap of A$1.81 billion, demonstrates solid financial health and growth potential. The company has reduced its debt to equity ratio from 19.2% to 7.6% over five years and maintains well-covered interest payments with an EBIT coverage of 7.5 times. Earnings have grown by 22.7% in the past year, surpassing industry averages, while maintaining high-quality earnings without shareholder dilution. Despite trading below estimated fair value and having more cash than total debt, its dividend coverage remains weak due to insufficient free cash flows. Recent equity offerings may impact future stock performance considerations.

• Jump into the full analysis health report here for a deeper understanding of NRW Holdings.
• Learn about NRW Holdings' future growth trajectory here.

Perenti (ASX:PRN)

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

Overview: Perenti Limited is a global mining services company with a market capitalization of A$1.11 billion.

Operations: The company's revenue is primarily derived from Contract Mining Services (A$2.54 billion), Drilling Services (A$598.10 million), and Mining Services and Idoba (A$239.06 million).

Market Cap: A$1.11B

Perenti Limited, with a market cap of A$1.11 billion, shows a mixed financial picture typical of penny stocks. The company has experienced significant earnings growth over the past five years, though recent earnings have declined slightly, underperforming industry averages. Its debt management is prudent with a satisfactory net debt to equity ratio and strong coverage by operating cash flow. Despite stable short-term asset coverage over liabilities and high-quality past earnings, its return on equity remains low at 6%. Recent share buyback initiatives signal confidence in undervaluation but may not stabilize its historically unstable dividend track record.

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

Service Stream (ASX:SSM)

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

Overview: Service Stream Limited operates in Australia, focusing on the design, construction, operation, and maintenance of infrastructure networks in the telecommunications, utilities, and transport sectors with a market cap of A$995.84 million.

Operations: The company's revenue is derived from three main segments: Telecommunications (A$1.20 billion), Utilities (A$969.59 million), and Transport (A$119.16 million).

Market Cap: A$995.84M

Service Stream Limited, with a market cap of A$995.84 million, demonstrates characteristics often seen in penny stocks. The company has achieved substantial earnings growth recently, with a 623.8% increase over the past year, far surpassing its five-year average decline of 34.5%. Its debt is well-managed and covered by operating cash flow at 178.3%, while short-term assets exceed both short- and long-term liabilities, indicating financial stability. Despite low return on equity at 6.7% and an inexperienced board with an average tenure of 2.6 years, Service Stream's recent dividend increase reflects improved profitability and shareholder returns.

• Click here and access our complete financial health analysis report to understand the dynamics of Service Stream.
• Review our growth performance report to gain insights into Service Stream's future.

Next Steps

• Explore the 1,043 names from our ASX Penny Stocks screener 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.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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