ASX Penny Stocks To Watch In February 2025

The Australian market has shown modest gains, with the ASX200 edging up 0.12% to 8,531 points, driven by strong performances in IT and consumer staples sectors. In light of these conditions, investors might consider exploring opportunities beyond the usual large-cap stocks. While the term "penny stocks" may seem outdated, these smaller or newer companies can still offer intriguing investment prospects due to their affordability and potential for growth when backed by solid financials.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.775	A$142.2M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.57	A$66.88M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.98	A$247.08M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.50	A$310.07M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.895	A$104.82M	★★★★★★
Dusk Group (ASX:DSK)	A$1.05	A$65.38M	★★★★★★
GTN (ASX:GTN)	A$0.555	A$108.99M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.995	A$324.82M	★★★★★★
IVE Group (ASX:IGL)	A$2.21	A$342.3M	★★★★☆☆
SKS Technologies Group (ASX:SKS)	A$1.59	A$246.55M	★★★★★★

Click here to see the full list of 1,032 stocks from our ASX Penny Stocks screener.

Let's dive into some prime choices out of the screener.

Freehill Mining (ASX:FHS)

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

Overview: Freehill Mining Limited, along with its subsidiaries, is involved in the mining and exploration of mineral resources in Chile and has a market capitalization of A$12.31 million.

Operations: The company generates revenue from its Chilean mining operations, amounting to A$0.69 million.

Market Cap: A$12.31M

Freehill Mining, with a market cap of A$12.31 million, is pre-revenue, generating A$0.69 million from its Chilean operations. The company faces high volatility, with weekly fluctuations increasing over the past year and a highly volatile share price in recent months. Despite being debt-free and having short-term assets exceeding liabilities, Freehill Mining's negative return on equity and unprofitability pose challenges. The board's average tenure of 1.8 years indicates limited experience. Although it has raised additional capital recently, Freehill Mining previously had no cash runway based on last reported free cash flow data as of June 2024.

• Dive into the specifics of Freehill Mining here with our thorough balance sheet health report.
• Learn about Freehill Mining's historical performance here.

ImExHS (ASX:IME)

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

Overview: ImExHS Limited provides cloud-based medical imaging solutions both in Australia and internationally, with a market cap of A$18.36 million.

Operations: The company generates revenue from two main segments: Software, contributing A$9.02 million, and Radiology, which accounts for A$15.63 million.

Market Cap: A$18.36M

ImExHS Limited, with a market cap of A$18.36 million, is navigating the penny stock landscape with its cloud-based medical imaging solutions. While unprofitable, it has reduced losses over the past five years by 13.2% annually and maintains a positive revenue stream from its Software (A$9.02 million) and Radiology (A$15.63 million) segments. The company faces challenges with less than a year of cash runway but benefits from having more cash than total debt and short-term assets exceeding liabilities significantly. Despite high share price volatility, ImExHS is trading at good value compared to peers in the industry.

• Jump into the full analysis health report here for a deeper understanding of ImExHS.
• Examine ImExHS' earnings growth report to understand how analysts expect it to perform.

Mastermyne Group (ASX:MYE)

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

Overview: Mastermyne Group Limited operates in Australia, offering mine operation, contracting, training, and related services in the mining and supporting industries, with a market cap of A$52.53 million.

Operations: The company generated A$294.39 million in revenue from its operations and services within the mining sector in Australia.

Market Cap: A$52.53M

Mastermyne Group, with a market cap of A$52.53 million, has transitioned to profitability over the past year, supported by a strong revenue base of A$294.39 million from its mining operations in Australia. The company's financial health is reinforced by short-term assets exceeding both short and long-term liabilities, and it maintains more cash than debt with interest well-covered by EBIT. Despite recent management changes including a new CFO with extensive mining experience, the board's limited tenure suggests ongoing leadership evolution. The stock's low price-to-earnings ratio indicates potential value against broader market benchmarks amidst stable volatility.

• Click to explore a detailed breakdown of our findings in Mastermyne Group's financial health report.
• Assess Mastermyne Group's previous results with our detailed historical performance reports.

Seize The Opportunity

• Unlock our comprehensive list of 1,032 ASX Penny Stocks by clicking here.
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Ready For A Different Approach?

• 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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