3 ASX Penny Stocks With Market Caps Under A$400M

The ASX200 traded flat today, with Real Estate leading gains and Energy lagging behind. For investors willing to explore beyond the well-known names, penny stocks can offer intriguing opportunities. Despite their vintage label, these smaller or newer companies may provide a mix of affordability and growth potential when backed by solid financials.

Top 10 Penny Stocks In Australia

Click here to see the full list of 438 stocks from our ASX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Brisbane Broncos (ASX:BBL)

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

Overview: Brisbane Broncos Limited manages and operates the Brisbane Broncos Rugby League Football teams in Australia, with a market cap of A$116.67 million.

Operations: The company generates revenue primarily through its Sports Management and Entertainment segment, which accounts for A$65.79 million.

Market Cap: A$116.67M

Brisbane Broncos Limited, with a market cap of A$116.67 million, has shown robust financial health and growth. The company reported half-year revenue of A$49.62 million, up from A$42.26 million the previous year, with net income rising to A$6.01 million from A$4.25 million. Its strong balance sheet features no debt and short-term assets exceeding liabilities significantly, ensuring liquidity and stability. Despite a lower-than-average return on equity at 14.4%, its price-to-earnings ratio of 15.6x suggests potential value compared to the broader Australian market average of 19x, making it an intriguing option for penny stock investors seeking stability amidst volatility in this segment.

• Dive into the specifics of Brisbane Broncos here with our thorough balance sheet health report.
• Assess Brisbane Broncos' previous results with our detailed historical performance reports.

Gladiator Resources (ASX:GLA)

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

Overview: Gladiator Resources Limited is involved in the exploration of mineral properties and has a market cap of A$18.20 million.

Operations: The company generates revenue primarily from its mineral exploration industry segment, amounting to A$0.21 million.

Market Cap: A$18.2M

Gladiator Resources Limited, with a market cap of A$18.20 million, is pre-revenue and has recently bolstered its cash position through a follow-on equity offering of A$1.18 million. Despite being debt-free and having short-term assets that significantly exceed liabilities, the company faces challenges with high share price volatility and a negative return on equity at -27.96%, reflecting its unprofitability. The board's inexperience may pose governance risks, but the recent capital raise extends its cash runway beyond previous estimates of 3 to 5 months, providing some financial flexibility as it continues mineral exploration activities.

• Take a closer look at Gladiator Resources' potential here in our financial health report.
• Gain insights into Gladiator Resources' historical outcomes by reviewing our past performance report.

Helloworld Travel (ASX:HLO)

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

Overview: Helloworld Travel Limited is a travel distribution company operating in Australia, New Zealand, and internationally, with a market capitalization of A$305.42 million.

Operations: The company's revenue is generated from its travel operations, with A$149.17 million from Australia, A$33.68 million from New Zealand, and A$3.43 million from the rest of the world.

Market Cap: A$305.42M

Helloworld Travel Limited, with a market cap of A$305.42 million, demonstrates financial stability and growth potential despite recent revenue decline to A$192.82 million from A$211.09 million the previous year. The company boasts a strong balance sheet with short-term assets of A$251.9 million surpassing both short (A$209.3M) and long-term liabilities (A$17.9M). It remains debt-free, eliminating interest concerns, and has improved net profit margins to 18.3%. While its earnings growth slowed to 7.3% last year compared to a five-year average of 66.2%, it trades slightly below estimated fair value offering potential upside for investors mindful of its low return on equity at 9.7%.

• Click to explore a detailed breakdown of our findings in Helloworld Travel's financial health report.
• Review our growth performance report to gain insights into Helloworld Travel's future.

Seize The Opportunity

• Click here to access our complete index of 438 ASX Penny Stocks.
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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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