Stock Analysis

3 ASX Penny Stocks With Market Caps Under A$200M

ASX:BMT
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The Australian market has started the week lower, influenced by unexpected developments in U.S. employment data and a weakening Aussie dollar, while sectors like Energy have shown resilience amidst broader declines. In such fluctuating conditions, investors often turn their attention to penny stocks—smaller or newer companies that offer potential growth at lower price points. Despite being an older term, penny stocks can still provide valuable opportunities when they possess strong financials and clear growth prospects.

Top 10 Penny Stocks In Australia

NameShare PriceMarket CapFinancial Health Rating
Embark Early Education (ASX:EVO)A$0.775A$142.2M★★★★☆☆
LaserBond (ASX:LBL)A$0.57A$66.82M★★★★★★
Austin Engineering (ASX:ANG)A$0.535A$331.78M★★★★★☆
SHAPE Australia (ASX:SHA)A$2.90A$240.44M★★★★★★
Vita Life Sciences (ASX:VLS)A$1.94A$108.78M★★★★★★
Helloworld Travel (ASX:HLO)A$1.98A$322.38M★★★★★★
SKS Technologies Group (ASX:SKS)A$1.59A$253.28M★★★★★★
Big River Industries (ASX:BRI)A$1.255A$107.15M★★★★★☆
Navigator Global Investments (ASX:NGI)A$1.59A$779.23M★★★★★☆
Servcorp (ASX:SRV)A$4.93A$486.42M★★★★☆☆

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

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

BNK Banking (ASX:BBC)

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

Overview: BNK Banking Corporation Limited offers a range of retail and commercial banking products and financial services in Australia, with a market cap of A$38.58 million.

Operations: The company's revenue is derived from its banking segment, totaling A$20.85 million.

Market Cap: A$38.58M

BNK Banking Corporation Limited, with a market cap of A$38.58 million and revenue of A$20.85 million, faces challenges as it remains unprofitable with declining earnings over the past five years. Although its return on equity is negative at -5.53%, the bank benefits from low-risk funding primarily through customer deposits and maintains an appropriate loans to deposits ratio of 108%. The board is experienced with an average tenure of 3.5 years, but management lacks experience with only 1.2 years on average. Despite these hurdles, BNK's bad loan ratio remains at a healthy 0%, supported by a sufficient allowance for bad loans at 495%.

ASX:BBC Debt to Equity History and Analysis as at Jan 2025
ASX:BBC Debt to Equity History and Analysis as at Jan 2025

Beamtree Holdings (ASX:BMT)

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

Overview: Beamtree Holdings Limited offers artificial intelligence-based decision support software and data insight services to the healthcare industry both in Australia and internationally, with a market cap of A$78.23 million.

Operations: The company generates revenue of A$27.60 million from its healthcare software segment.

Market Cap: A$78.23M

Beamtree Holdings Limited, with a market cap of A$78.23 million and revenue of A$27.60 million, is navigating the challenges common to penny stocks as it remains unprofitable with increasing losses over the past five years. Despite this, Beamtree's short-term assets exceed both its short- and long-term liabilities, providing some financial stability. The company trades significantly below its estimated fair value and has more cash than debt, offering potential upside if profitability improves. Recent executive changes include CEO Tim Kelsey stepping down in early 2025 to pursue international opportunities but remaining involved in an advisory role.

ASX:BMT Revenue & Expenses Breakdown as at Jan 2025
ASX:BMT Revenue & Expenses Breakdown as at Jan 2025

Sandon Capital Investments (ASX:SNC)

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

Overview: Sandon Capital Investments Limited is a publicly owned investment manager with a market cap of A$116.79 million.

Operations: The company's revenue segment consists of Investing Activities, generating A$20.72 million.

Market Cap: A$116.79M

Sandon Capital Investments Limited, with a market cap of A$116.79 million and revenue from investing activities of A$20.72 million, has shown significant earnings growth over the past year at 657.1%, outpacing the industry average. Despite an increase in debt to equity ratio to 24% over five years, its debt is well covered by cash flow and short-term assets significantly exceed liabilities, indicating strong financial health. The company trades slightly below its fair value estimate and recently announced an inaugural quarterly dividend of 1.4 cents per share for March 2025, reflecting a commitment to shareholder returns amidst stable weekly volatility.

ASX:SNC Revenue & Expenses Breakdown as at Jan 2025
ASX:SNC Revenue & Expenses Breakdown as at Jan 2025

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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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