3 ASX Penny Stocks With Market Caps Larger Than A$20M

As the ASX 200 opens lower, reflecting investor caution ahead of key interest rate decisions by the RBA and ongoing global economic uncertainties, attention turns to smaller investment opportunities. Penny stocks, while an older term, remain relevant as they often represent smaller or newer companies that can offer growth potential at accessible price points. In this article, we explore three Australian penny stocks that combine financial strength with promising prospects for investors seeking hidden value in today's market landscape.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
LaserBond (ASX:LBL)	A$0.62	A$71.5M	★★★★★★
Embark Early Education (ASX:EVO)	A$0.77	A$143.12M	★★★★☆☆
Helloworld Travel (ASX:HLO)	A$1.81	A$289.14M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.52	A$328.68M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.85	A$102.34M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.665	A$818.43M	★★★★★☆
Perenti (ASX:PRN)	A$1.165	A$1.07B	★★★★★★
Atlas Pearls (ASX:ATP)	A$0.135	A$61M	★★★★★★
EZZ Life Science Holdings (ASX:EZZ)	A$3.70	A$141.27M	★★★★★★
Joyce (ASX:JYC)	A$4.33	A$129.2M	★★★★★★

Click here to see the full list of 1,034 stocks from our ASX Penny Stocks screener.

We'll examine a selection from our screener results.

Estrella Resources (ASX:ESR)

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

Overview: Estrella Resources Limited, with a market cap of A$29.08 million, explores for mineral resources in Western Australia and Timor-Leste through its subsidiaries.

Operations: Estrella Resources Limited has not reported any revenue segments.

Market Cap: A$29.08M

Estrella Resources Limited, with a market cap of A$29.08 million, is currently pre-revenue and unprofitable, having reported a net loss of A$2.99 million for the year ended June 2024. The company has raised capital through recent equity offerings totaling A$6.6 million to support its operations and extend its cash runway beyond the current two months based on free cash flow estimates. Despite high volatility in its share price and shareholder dilution over the past year, Estrella remains debt-free with short-term assets exceeding liabilities, providing some financial stability amidst ongoing challenges in achieving profitability.

• Take a closer look at Estrella Resources' potential here in our financial health report.
• Learn about Estrella Resources' historical performance here.

Hartshead Resources (ASX:HHR)

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

Overview: Hartshead Resources NL is involved in the exploration and development of oil and gas properties in the United Kingdom, Gabon, and Madagascar, with a market cap of A$22.52 million.

Operations: The company generates revenue from its Oil and Gas Development and Exploration segment, amounting to A$4.68 million.

Market Cap: A$22.52M

Hartshead Resources NL, with a market cap of A$22.52 million, is currently unprofitable and pre-revenue despite reporting A$5.44 million in revenue for the year ended June 2024, indicating limited significant revenue streams. The company benefits from being debt-free with no long-term liabilities and has an experienced board and management team. Hartshead's short-term assets (A$24.5M) comfortably exceed its short-term liabilities (A$3M), providing financial stability alongside sufficient cash runway for over a year based on current free cash flow trends; however, its share price remains highly volatile compared to most Australian stocks.

• Jump into the full analysis health report here for a deeper understanding of Hartshead Resources.
• Gain insights into Hartshead Resources' historical outcomes by reviewing our past performance report.

TPG Telecom (ASX:TPG)

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

Overview: TPG Telecom Limited offers telecommunications services to various customer segments in Australia, with a market cap of A$8.38 billion.

Operations: The company's revenue is derived from its Consumer segment, which generated A$4.53 billion, and its Enterprise, Government and Wholesale segment, which contributed A$1.09 billion.

Market Cap: A$8.38B

TPG Telecom, with a market cap of A$8.38 billion, shows mixed financial health in the context of penny stocks. The company's revenue streams are robust, with A$4.53 billion from its Consumer segment and A$1.09 billion from Enterprise and Government services. However, recent earnings have been impacted by a large one-off loss of A$14 million, resulting in lower profit margins at 0.5% compared to 7.2% last year. Despite this, TPG's debt is well-covered by operating cash flow (42%), and interest payments are adequately managed with an EBIT coverage ratio of 8.6x, indicating some financial stability amidst volatility concerns.

• Click here and access our complete financial health analysis report to understand the dynamics of TPG Telecom.
• Evaluate TPG Telecom's prospects by accessing our earnings growth report.

Key Takeaways

• Gain an insight into the universe of 1,034 ASX Penny Stocks by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready To Venture Into Other Investment Styles?

• 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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