ASX Penny Stocks To Watch This December 2024

The Australian market is poised for a positive start with the ASX 200 expected to open slightly higher, buoyed by China's commitment to proactive fiscal policies which has positively impacted commodities and the dollar. In this context, penny stocks—though an older term—remain relevant as they often represent smaller or emerging companies that can present unique growth opportunities. When these stocks are supported by robust financial health, they can offer both value and potential for long-term success.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.78	A$143.12M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.575	A$67.4M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.995	A$324.82M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.53	A$328.68M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.69	A$93.48M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.85	A$236.3M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.625	A$796.38M	★★★★★☆
Vita Life Sciences (ASX:VLS)	A$1.95	A$109.66M	★★★★★★
EZZ Life Science Holdings (ASX:EZZ)	A$2.67	A$123.24M	★★★★★★
Servcorp (ASX:SRV)	A$4.97	A$490.37M	★★★★☆☆

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.

Bravura Solutions (ASX:BVS)

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

Overview: Bravura Solutions Limited develops, licenses, and maintains software applications for wealth management and funds administration sectors across Australia, the United Kingdom, New Zealand, and internationally with a market cap of approximately A$995.23 million.

Operations: The company's revenue is primarily derived from its Wealth Management segment, which accounts for A$163.13 million, and its Funds Administration segment, contributing A$87.28 million.

Market Cap: A$995.23M

Bravura Solutions has shown financial resilience, becoming profitable this year with stable weekly volatility at 8%. The company operates debt-free, with short-term assets of A$154.8 million comfortably covering both short and long-term liabilities. Recent developments include an upward revision in revenue guidance for fiscal 2025 to A$240-245 million, reflecting positive business momentum. Despite a low return on equity of 6.6% and an inexperienced board and management team, Bravura's high-quality earnings and lack of shareholder dilution provide a solid foundation for potential growth in the wealth management software sector.

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

Lode Resources (ASX:LDR)

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

Overview: Lode Resources Ltd is involved in identifying and evaluating mineral resource deposits in Australia, with a market cap of A$13.88 million.

Operations: Currently, there are no reported revenue segments for Lode Resources Ltd.

Market Cap: A$13.88M

Lode Resources Ltd is a pre-revenue company with a market cap of A$13.88 million, focusing on mineral resource exploration in Australia. The company has no significant revenue streams and reported a net loss of A$1.17 million for the year ending June 30, 2024, slightly higher than the previous year. Despite being debt-free and having short-term assets of A$2.3 million covering liabilities, Lode's share price remains highly volatile compared to most Australian stocks. Recently, Lode raised an additional A$4.5 million through a follow-on equity offering to bolster its cash runway beyond the current 11 months estimate based on free cash flow projections.

• Jump into the full analysis health report here for a deeper understanding of Lode Resources.
• Evaluate Lode Resources' historical performance by accessing our past performance report.

Marmota (ASX:MEU)

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

Overview: Marmota Limited is involved in the exploration of mineral properties in Australia and has a market capitalization of A$41.29 million.

Operations: Marmota Limited does not report any specific revenue segments.

Market Cap: A$41.29M

Marmota Limited, with a market cap of A$41.29 million, remains pre-revenue as it focuses on mineral exploration in Australia. The company reported minimal revenue of A$0.14 million and a net loss of A$0.40 million for the year ending June 30, 2024, reflecting its ongoing unprofitability. Despite this, Marmota is debt-free and maintains sufficient short-term assets (A$3.7 million) to cover its liabilities (A$745.3K). The company's cash runway extends over a year even if free cash flow decreases at historical rates, although shareholders experienced dilution with shares outstanding increasing by 2.6% last year.

• Take a closer look at Marmota's potential here in our financial health report.
• Examine Marmota's past performance report to understand how it has performed in prior years.

Key Takeaways

• Click here to access our complete index of 1,049 ASX Penny Stocks.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Seeking Other Investments?

• 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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