3 ASX Penny Stocks With Market Caps Over A$50M To Watch

As the Australian market closes out 2024 with a slight downturn, investors are reflecting on a year marked by profit-taking and sector fluctuations. Despite this, opportunities remain for those looking to explore beyond the well-trodden paths of large-cap stocks. Penny stocks, though an older term, still hold relevance as they often represent smaller or newer companies that can offer surprising value and potential growth when backed by strong financial health.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.765	A$140.36M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.56	A$65.64M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.88	A$238.78M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.955	A$318.31M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.51	A$316.27M	★★★★★☆
Navigator Global Investments (ASX:NGI)	A$1.72	A$842.94M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.88	A$103.99M	★★★★★★
SKS Technologies Group (ASX:SKS)	A$1.59	A$205.65M	★★★★★★
Vita Life Sciences (ASX:VLS)	A$2.00	A$112.19M	★★★★★★
Servcorp (ASX:SRV)	A$4.90	A$483.46M	★★★★☆☆

Click here to see the full list of 1,053 stocks from our ASX Penny Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Alligator Energy (ASX:AGE)

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

Overview: Alligator Energy Limited is involved in mineral exploration activities in Australia and Italy, with a market capitalization of A$131.70 million.

Operations: The company's revenue segment consists solely of Mining and Exploration, generating A$1.11 million.

Market Cap: A$131.7M

Alligator Energy Limited, with a market capitalization of A$131.70 million, is currently pre-revenue and unprofitable, generating only A$1.11 million from mining and exploration activities. The company has no debt and boasts a seasoned management team with an average tenure of 6.7 years, alongside an experienced board averaging 9.4 years in tenure. Alligator Energy's short-term assets of A$29.3 million comfortably cover both its short-term liabilities (A$1.7 million) and long-term liabilities (A$593,600). Despite stable weekly volatility over the past year at 7%, profitability isn't expected within the next three years according to analyst forecasts.

• Jump into the full analysis health report here for a deeper understanding of Alligator Energy.
• Explore Alligator Energy's analyst forecasts in our growth report.

Experience Co (ASX:EXP)

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

Overview: Experience Co Limited operates in the adventure tourism and leisure industry across Australia and New Zealand, with a market cap of A$98.47 million.

Operations: The company's revenue is derived from its Skydiving segment, which generated A$62.05 million, and Adventure Experiences, contributing A$64.97 million.

Market Cap: A$98.47M

Experience Co Limited, with a market cap of A$98.47 million, is unprofitable but has reduced losses by 27.3% annually over the past five years and is forecasted to grow earnings by 70.05% per year. The company maintains a satisfactory net debt to equity ratio of 6.9%, although its short-term assets (A$20.5M) do not cover its liabilities (short-term: A$32.2M, long-term: A$30.9M). Experience Co's management and board are considered experienced with average tenures of 2.1 and 5.3 years respectively, while it trades significantly below estimated fair value with stable weekly volatility at 8%.

• Click here to discover the nuances of Experience Co with our detailed analytical financial health report.
• Evaluate Experience Co's prospects by accessing our earnings growth report.

Lunnon Metals (ASX:LM8)

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

Overview: Lunnon Metals Limited is engaged in the exploration and development of nickel and gold in Australia, with a market cap of A$55.12 million.

Operations: The company's revenue is primarily derived from mineral exploration, amounting to A$0.001551 million.

Market Cap: A$55.12M

Lunnon Metals Limited, with a market cap of A$55.12 million, is pre-revenue and currently unprofitable. The company's short-term assets (A$22.6M) comfortably exceed both its short-term (A$733K) and long-term liabilities (A$57.2K), while it remains debt-free. Despite trading at 85.9% below estimated fair value, the stock has shown high volatility over the past three months and was recently delisted from OTC Equity due to inactivity as of November 26, 2024. Lunnon's management team is experienced with an average tenure of 5.9 years, providing stability amidst financial challenges and growth forecasts of 56.24% annually in earnings.

• Unlock comprehensive insights into our analysis of Lunnon Metals stock in this financial health report.
• Assess Lunnon Metals' future earnings estimates with our detailed growth reports.

Make It Happen

• Embark on your investment journey to our 1,053 ASX Penny Stocks selection 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.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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