Stock Analysis
3 ASX Penny Stocks With Market Caps Over A$10M To Consider
Reviewed by Simply Wall St
As the ASX 200 gears up for a potential rise, buoyed by optimism of a year-end rally and positive movements in commodities like iron ore, Australian investors are keenly eyeing opportunities across various market segments. Despite its vintage connotations, the term "penny stock" remains relevant as it highlights smaller or less-established companies that can offer substantial value. By focusing on those with solid financial foundations and growth potential, investors can uncover hidden gems within this sector.
Top 10 Penny Stocks In Australia
| Name | Share Price | Market Cap | Financial Health Rating |
| Embark Early Education (ASX:EVO) | A$0.80 | A$146.79M | ★★★★☆☆ |
| LaserBond (ASX:LBL) | A$0.55 | A$64.47M | ★★★★★★ |
| Helloworld Travel (ASX:HLO) | A$2.05 | A$333.78M | ★★★★★★ |
| Austin Engineering (ASX:ANG) | A$0.54 | A$334.88M | ★★★★★☆ |
| MaxiPARTS (ASX:MXI) | A$1.83 | A$101.23M | ★★★★★★ |
| SHAPE Australia (ASX:SHA) | A$2.79 | A$231.32M | ★★★★★★ |
| Navigator Global Investments (ASX:NGI) | A$1.69 | A$828.23M | ★★★★★☆ |
| Vita Life Sciences (ASX:VLS) | A$2.01 | A$113.04M | ★★★★★★ |
| Big River Industries (ASX:BRI) | A$1.30 | A$110.99M | ★★★★★☆ |
| Servcorp (ASX:SRV) | A$4.86 | A$479.51M | ★★★★☆☆ |
Click here to see the full list of 1,044 stocks from our ASX Penny Stocks screener.
Here's a peek at a few of the choices from the screener.
Avecho Biotechnology (ASX:AVE)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Avecho Biotechnology Limited is a biotechnology company focused on developing and commercializing human and animal health products using its proprietary drug delivery system and Tocopherol Phosphate Mixture in Australia, with a market cap of A$12.68 million.
Operations: The company generates its revenue from production activities amounting to A$0.34 million.
Market Cap: A$12.68M
Avecho Biotechnology, with a market cap of A$12.68 million, is pre-revenue with production activities generating A$0.34 million. Despite being unprofitable and experiencing increased losses over the past five years, Avecho benefits from having no debt and sufficient cash runway for more than a year based on current free cash flow. The company's experienced board and management team provide stability amidst its high share price volatility. Recent participation in the Bell Potter Healthcare Conference may enhance visibility within the sector as it continues to leverage its proprietary drug delivery system for future growth prospects.
- Click to explore a detailed breakdown of our findings in Avecho Biotechnology's financial health report.
- Assess Avecho Biotechnology's previous results with our detailed historical performance reports.
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 cap of A$333.78 million.
Operations: The company's revenue is primarily derived from Travel Operations in Australia (A$158.66 million), New Zealand (A$37.71 million), and the Rest of World (A$3.74 million), along with contributions from its Transport, Logistics, and Warehousing segment (A$16.74 million).
Market Cap: A$333.78M
Helloworld Travel, with a market cap of A$333.78 million, has demonstrated strong financial health, being debt-free and having short-term assets (A$253.7M) that exceed both its short-term (A$228.0M) and long-term liabilities (A$57.7M). The company has shown impressive earnings growth of 59.4% over the past year, surpassing its five-year average of 16.9%. Despite shareholder dilution in the past year, Helloworld is trading at a significant discount to its estimated fair value and is expected to see further earnings growth of 8.99% annually according to analyst forecasts.
- Get an in-depth perspective on Helloworld Travel's performance by reading our balance sheet health report here.
- Gain insights into Helloworld Travel's future direction by reviewing our growth report.
Pureprofile (ASX:PPL)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Pureprofile Ltd is a data and insights company offering online research solutions to agencies, marketers, researchers, publishers, and brands across Australasia, Europe, and the United States with a market cap of A$46.37 million.
Operations: The company generates revenue from its Data & Insights segment, which accounts for A$48.07 million, and the Pure.Amplify Media AU segment, contributing A$0.0003 million.
Market Cap: A$46.37M
Pureprofile Ltd, with a market cap of A$46.37 million, has shown financial resilience by maintaining short-term assets (A$18.1M) that exceed both its short-term (A$15.6M) and long-term liabilities (A$4.3M). The company has recently transitioned to profitability, although earnings have been affected by a one-off loss of A$150.7K in the past year. Pureprofile's cash position surpasses its total debt, indicating prudent financial management despite low return on equity at 1.9%. Trading below estimated fair value, it offers potential value compared to peers but faces challenges with interest coverage and board experience.
- Click here and access our complete financial health analysis report to understand the dynamics of Pureprofile.
- Learn about Pureprofile's future growth trajectory here.
Seize The Opportunity
- Navigate through the entire inventory of 1,044 ASX Penny Stocks here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.
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.
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About ASX:PPL
Pureprofile
A data and insights organization, engages in the provision of online research solutions for agencies, marketers, researchers, publishers, and brands and businesses in Australasia, Europe, and the United States.
