ASX Penny Stocks To Watch In December 2024

The Australian market has recently shown a positive trend, with the ASX 200 closing up by 0.29%, driven by gains in sectors like Real Estate and Healthcare, even as inflation remains a concern according to the latest RBA minutes. Amid these broader market movements, penny stocks continue to capture investor interest due to their potential for growth at lower entry points. While the term "penny stock" might seem outdated, it still refers to smaller or newer companies that can offer significant opportunities when backed by strong financials and solid fundamentals.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.765	A$140.36M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.55	A$64.47M	★★★★★★
Helloworld Travel (ASX:HLO)	A$1.95	A$317.49M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.51	A$316.27M	★★★★★☆
Navigator Global Investments (ASX:NGI)	A$1.68	A$823.33M	★★★★★☆
Vita Life Sciences (ASX:VLS)	A$1.88	A$105.46M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.85	A$236.3M	★★★★★★
SKS Technologies Group (ASX:SKS)	A$1.59	A$193.32M	★★★★★★
EZZ Life Science Holdings (ASX:EZZ)	A$3.17	A$146.32M	★★★★★★
Servcorp (ASX:SRV)	A$4.87	A$480.5M	★★★★☆☆

Click here to see the full list of 1,053 stocks from our ASX Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Arafura Rare Earths (ASX:ARU)

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

Overview: Arafura Rare Earths Limited focuses on the exploration and development of mineral properties in Australia, with a market capitalization of A$283.40 million.

Operations: Currently, there are no reported revenue segments for this company.

Market Cap: A$283.4M

Arafura Rare Earths, with a market cap of A$283.40 million, remains pre-revenue and unprofitable, having increased losses over the past five years at a significant rate. The company is debt-free but has diluted shareholders recently. Its short-term assets cover both short and long-term liabilities. Despite having only a 5-month cash runway as of June 2024, Arafura raised additional capital to extend operations. Recent leadership changes include appointing Tommie van der Walt as Chief Projects Officer, bringing extensive experience in rare earth projects which could support the development of their Nolans Project amidst ongoing operational challenges.

• Unlock comprehensive insights into our analysis of Arafura Rare Earths stock in this financial health report.
• Evaluate Arafura Rare Earths' prospects by accessing our earnings growth report.

Macmahon Holdings (ASX:MAH)

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

Overview: Macmahon Holdings Limited offers surface and underground mining services, as well as mining support and civil infrastructure services to mining companies in Australia and Southeast Asia, with a market cap of A$749.58 million.

Operations: The company's revenue is primarily derived from its Mining (Including Civil) segment, which generated A$2.03 billion.

Market Cap: A$749.58M

Macmahon Holdings, with a market cap of A$749.58 million, generates significant revenue from its Mining segment, totaling A$2.03 billion. The company maintains a strong financial position with more cash than debt and well-covered interest payments by EBIT at 4x coverage. Despite negative earnings growth of -7.7% last year and declining profits over the past five years, Macmahon is projected to grow earnings by 11.05% annually moving forward. Recent board appointments indicate strategic shifts as the board's average tenure is only 0.8 years, suggesting potential for new perspectives in governance amidst stable weekly volatility and high-quality earnings.

• Take a closer look at Macmahon Holdings' potential here in our financial health report.
• Review our growth performance report to gain insights into Macmahon Holdings' future.

Plenti Group (ASX:PLT)

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

Overview: Plenti Group Limited operates in the fintech lending and investment sector in Australia, with a market capitalization of A$117.47 million.

Operations: The company's revenue is derived from the provision of financial services, totaling A$83.84 million.

Market Cap: A$117.47M

Plenti Group Limited, operating in the fintech lending sector, has demonstrated revenue growth with A$124.25 million reported for the first half of 2024, up from A$96.78 million a year prior. Despite being unprofitable with a negative return on equity of -74.18%, Plenti has managed to reduce losses over five years and maintain a positive free cash flow, ensuring a cash runway exceeding three years. The company's short-term assets significantly surpass its liabilities, indicating strong liquidity management despite high net debt to equity levels at 11,169%. Its seasoned management team and stable weekly volatility provide further operational stability.

• Click here and access our complete financial health analysis report to understand the dynamics of Plenti Group.
• Assess Plenti Group's future earnings estimates with our detailed growth reports.

Turning Ideas Into Actions

• Navigate through the entire inventory of 1,053 ASX Penny Stocks here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

• 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