ASX Penny Stocks To Watch In January 2025

The Australian market has shown resilience, with the ASX200 climbing for the third consecutive week, buoyed by a better-than-expected tariff outcome under the new Trump administration. Amid these broader market movements, investors might find opportunities in sectors like Discretionary and Health Care, which have recently outperformed. The term "penny stocks" may seem outdated, but these smaller or newer companies continue to offer potential value and growth when supported by strong financials; let's explore some that stand out for their financial strength.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.76	A$139.45M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.585	A$69.16M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.92	A$242.1M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.50	A$310.07M	★★★★★☆
GTN (ASX:GTN)	A$0.55	A$106.53M	★★★★★★
MaxiPARTS (ASX:MXI)	A$1.95	A$106.76M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.945	A$320.75M	★★★★★★
Servcorp (ASX:SRV)	A$5.01	A$492.38M	★★★★☆☆
IVE Group (ASX:IGL)	A$2.12	A$333.01M	★★★★☆☆
Centrepoint Alliance (ASX:CAF)	A$0.33	A$64.64M	★★★★★☆

Click here to see the full list of 1,026 stocks from our ASX Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Credit Clear (ASX:CCR)

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

Overview: Credit Clear Limited develops and implements a receivables management platform and provides receivable collection services in Australia and New Zealand, with a market cap of A$139.93 million.

Operations: The company generates revenue through two main segments: Collections, which accounts for A$35.09 million, and Legal Services, contributing A$7.15 million.

Market Cap: A$139.93M

Credit Clear Limited, with a market cap of A$139.93 million, operates in the receivables management sector across Australia and New Zealand. The company generates revenue primarily from its Collections (A$35.09 million) and Legal Services (A$7.15 million) segments. Despite being unprofitable with increasing losses over five years, it is debt-free and maintains a stable cash runway exceeding three years due to positive free cash flow. Recent guidance suggests potential revenue growth up to A$50 million for fiscal year 2025, indicating progress towards profitability amidst stable weekly volatility and no significant shareholder dilution recently noted.

• Click here to discover the nuances of Credit Clear with our detailed analytical financial health report.
• Explore Credit Clear's analyst forecasts in our growth report.

Cassius Mining (ASX:CMD)

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

Overview: Cassius Mining Limited is involved in the mining and exploration of mineral properties across Australia and Africa, with a market capitalization of A$10.30 million.

Operations: No revenue segments have been reported.

Market Cap: A$10.3M

Cassius Mining Limited, with a market cap of A$10.30 million, operates in the mining sector and remains pre-revenue, generating less than US$1m annually. Despite being unprofitable, it has reduced losses over five years and maintains a debt-free balance sheet. The company's short-term assets significantly exceed its liabilities, providing some financial flexibility. Recent capital raises totaling A$1 million through equity offerings have extended its cash runway beyond the initial three months based on past free cash flow data. However, its share price remains highly volatile compared to most Australian stocks despite no recent shareholder dilution.

• Click here and access our complete financial health analysis report to understand the dynamics of Cassius Mining.
• Explore historical data to track Cassius Mining's performance over time in our past results report.

Paterson Resources (ASX:PSL)

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

Overview: Paterson Resources Ltd is a mineral resources company focused on the exploration and development of gold and copper projects in Australia, with a market cap of A$6.84 million.

Operations: No revenue segments have been reported.

Market Cap: A$6.84M

Paterson Resources Ltd, with a market cap of A$6.84 million, is pre-revenue and unprofitable, experiencing increased losses over the past five years at a rate of 28.6% annually. The company is debt-free and has short-term assets of A$3.1 million exceeding its liabilities of A$687.1K, offering some financial stability despite having less than a year of cash runway based on current free cash flow trends. Its share price remains highly volatile compared to most Australian stocks but hasn't faced significant shareholder dilution recently. The board's average tenure suggests experienced oversight in its operations.

• Navigate through the intricacies of Paterson Resources with our comprehensive balance sheet health report here.
• Understand Paterson Resources' track record by examining our performance history report.

Next Steps

• Investigate our full lineup of 1,026 ASX Penny Stocks right here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Looking For Alternative Opportunities?

• 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