Discovering Noxopharm And 2 Other ASX Penny Stocks To Watch

The Australian market remained flat over the last week but has seen a 22% increase over the past year, with earnings forecasted to grow by 12% annually. For investors interested in smaller or newer companies, penny stocks—despite their somewhat outdated moniker—can still present valuable opportunities. These stocks often offer a mix of affordability and growth potential when backed by strong financials, making them worth watching for those seeking underappreciated chances for growth.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
LaserBond (ASX:LBL)	A$0.57	A$65.06M	★★★★★★
Embark Early Education (ASX:EVO)	A$0.795	A$128.44M	★★★★☆☆
MaxiPARTS (ASX:MXI)	A$1.825	A$104.82M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.50	A$310.07M	★★★★★☆
Helloworld Travel (ASX:HLO)	A$1.85	A$300.41M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.70	A$842.94M	★★★★★☆
West African Resources (ASX:WAF)	A$1.715	A$1.95B	★★★★★★
Atlas Pearls (ASX:ATP)	A$0.135	A$56.64M	★★★★★★
GTN (ASX:GTN)	A$0.47	A$92.11M	★★★★★★
Joyce (ASX:JYC)	A$3.90	A$115.92M	★★★★★★

Click here to see the full list of 1,027 stocks from our ASX Penny Stocks screener.

Let's explore several standout options from the results in the screener.

Noxopharm (ASX:NOX)

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

Overview: Noxopharm Limited is an Australian biotech company focused on discovering and developing treatments for cancer, inflammation, and mRNA vaccines, with a market cap of A$33.61 million.

Operations: The company generates revenue of A$2.40 million from its development activities in both oncology and non-oncology fields.

Market Cap: A$33.61M

Noxopharm Limited, with a market cap of A$33.61 million, is pre-revenue, generating only A$2.40 million from its development activities in oncology and non-oncology fields. The company has no debt and a cash runway exceeding three years based on current free cash flow levels. Despite being unprofitable with a negative return on equity of -65.11%, it has an experienced management team and board of directors with average tenures of 3.8 and 4.6 years respectively. Recent earnings results showed an improved net loss of A$3.58 million compared to the previous year's A$15.06 million loss, indicating progress in financial performance despite high share price volatility.

• Get an in-depth perspective on Noxopharm's performance by reading our balance sheet health report here.
• Review our historical performance report to gain insights into Noxopharm's track record.

Qualitas (ASX:QAL)

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

Overview: Qualitas (ASX:QAL) is a real estate investment firm engaged in direct investments across various real estate classes and geographies, as well as acquisitions, distressed debt restructuring, third-party capital raisings, and consulting services, with a market cap of A$755.31 million.

Operations: The company generates revenue primarily from Direct Lending, which accounts for A$26.79 million, and Funds Management, contributing A$13.61 million.

Market Cap: A$755.31M

Qualitas, with a market cap of A$755.31 million, reported full-year revenue of A$84.02 million and net income of A$26.18 million, reflecting stable growth in earnings and profit margins. The company's debt is well-covered by operating cash flow, though its interest coverage ratio remains below ideal levels at 2.8 times EBIT. While the board's average tenure is short at 2.9 years, recent appointments like Darren Steinberg may enhance governance quality. Despite a low return on equity at 7.1%, Qualitas shows high-quality earnings and analysts anticipate further stock price appreciation amid improved financial metrics over time.

• Navigate through the intricacies of Qualitas with our comprehensive balance sheet health report here.
• Learn about Qualitas' future growth trajectory here.

Tanami Gold (ASX:TAM)

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

Overview: Tanami Gold NL, along with its subsidiaries, is involved in the exploration and evaluation of gold properties in Australia and has a market capitalization of A$45.83 million.

Operations: There are no reported revenue segments for the company.

Market Cap: A$45.83M

Tanami Gold NL, with a market cap of A$45.83 million, is pre-revenue and currently unprofitable, reporting a net loss of A$6.15 million for the year ended June 2024. Despite these challenges, the company benefits from a strong balance sheet with short-term assets of A$35.6 million exceeding both long-term liabilities (A$4.2 million) and short-term liabilities (A$1.2 million). Tanami Gold remains debt-free and has not significantly diluted shareholders in the past year, while its seasoned board offers stability with an average tenure of 12.3 years, providing some governance strength amid financial volatility.

• Click to explore a detailed breakdown of our findings in Tanami Gold's financial health report.
• Understand Tanami Gold's track record by examining our performance history report.

Summing It All Up

• Get an in-depth perspective on all 1,027 ASX Penny Stocks by using our screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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