Stock Analysis
The Australian stock market recently experienced a slight downturn, with the ASX200 closing down 0.64% at 8,420 points as investors opted to lock in profits after a series of record highs. Amid these broader market movements, penny stocks continue to attract attention for their potential value and opportunities. Despite their vintage name, penny stocks represent smaller or newer companies that can offer significant upside when they possess strong financial foundations and growth potential.
Top 10 Penny Stocks In Australia
| Name | Share Price | Market Cap | Financial Health Rating |
| Embark Early Education (ASX:EVO) | A$0.785 | A$144.03M | ★★★★☆☆ |
| LaserBond (ASX:LBL) | A$0.56 | A$65.64M | ★★★★★★ |
| Helloworld Travel (ASX:HLO) | A$2.03 | A$330.52M | ★★★★★★ |
| Austin Engineering (ASX:ANG) | A$0.52 | A$322.48M | ★★★★★☆ |
| MaxiPARTS (ASX:MXI) | A$1.70 | A$94.04M | ★★★★★★ |
| Navigator Global Investments (ASX:NGI) | A$1.595 | A$781.68M | ★★★★★☆ |
| SHAPE Australia (ASX:SHA) | A$2.86 | A$237.13M | ★★★★★★ |
| Vita Life Sciences (ASX:VLS) | A$2.04 | A$114.72M | ★★★★★★ |
| Big River Industries (ASX:BRI) | A$1.32 | A$112.7M | ★★★★★☆ |
| Servcorp (ASX:SRV) | A$4.90 | A$483.46M | ★★★★☆☆ |
Click here to see the full list of 1,045 stocks from our ASX Penny Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
IPD Group (ASX:IPG)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: IPD Group Limited is an Australian company that distributes electrical infrastructure, with a market cap of A$423.07 million.
Operations: The company generates revenue from its Products Division, which accounts for A$270.68 million, and its Services Division, contributing A$19.74 million.
Market Cap: A$423.07M
IPD Group, with a market cap of A$423.07 million, has demonstrated strong financial performance, with earnings growing 39.1% over the past year and surpassing industry averages. The company's short-term assets cover both its short-term and long-term liabilities comfortably, highlighting solid financial health. Despite a low return on equity at 14.8%, IPD's debt is well covered by operating cash flow and interest payments are secure with an EBIT coverage of 46.8 times. However, shareholders experienced dilution last year as shares outstanding increased by 6.9%. Analysts project continued earnings growth at approximately 13% annually.
- Click here and access our complete financial health analysis report to understand the dynamics of IPD Group.
- Understand IPD Group's earnings outlook by examining our growth report.
Structural Monitoring Systems (ASX:SMN)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Structural Monitoring Systems Plc designs, develops, manufactures, and sells structural health monitoring systems for the aviation industry across various global regions and has a market cap of A$70.55 million.
Operations: The company's revenue is derived from three segments: AEM CVM generating A$0.13 million, AEM Avionics contributing A$11.13 million, and AEM Contract Manufacturing accounting for A$16.69 million.
Market Cap: A$70.55M
Structural Monitoring Systems, with a market cap of A$70.55 million, operates in the aviation sector but remains unprofitable despite revenue contributions from its three segments. The company has recently completed follow-on equity offerings totaling A$7 million to bolster its financial position, although shareholders have faced dilution over the past year. While it has a satisfactory net debt to equity ratio of 34.7% and sufficient cash runway for over three years, concerns about its ability to continue as a going concern persist due to auditor doubts. Earnings are forecasted for significant growth at 96.91% annually, yet current profitability challenges remain evident.
- Take a closer look at Structural Monitoring Systems' potential here in our financial health report.
- Learn about Structural Monitoring Systems' future growth trajectory here.
Saunders International (ASX:SND)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Saunders International Limited, with a market cap of A$98.82 million, offers design, construction, fabrication, shutdown, maintenance, and industrial automation services for steel storage tanks and concrete bridges in Australia and the Pacific Region.
Operations: The company's revenue for its steel storage tanks, concrete bridges, and structural mechanical piping segment is A$216.08 million.
Market Cap: A$98.82M
Saunders International Limited, with a market cap of A$98.82 million, operates debt-free and has a stable financial position with short-term assets (A$66.9M) exceeding both short-term (A$50.9M) and long-term liabilities (A$11.1M). Despite trading at 69.8% below its estimated fair value, the company has faced shareholder dilution over the past year with shares outstanding increasing by 7.3%. Its net profit margins have slightly decreased from last year, while earnings growth remains negative at -1.3%, lagging behind industry averages. The board is experienced with an average tenure of 6.8 years but maintains an unstable dividend track record.
- Click to explore a detailed breakdown of our findings in Saunders International's financial health report.
- Examine Saunders International's past performance report to understand how it has performed in prior years.
Seize The Opportunity
- Take a closer look at our ASX Penny Stocks list of 1,045 companies by clicking 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.
- Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
Ready To Venture Into Other Investment Styles?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- 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:SMN
Structural Monitoring Systems
Designs, develops, manufactures, and sells structural health monitoring systems for the aviation industry in Australia, the United Kingdom, rest of Europe, Asia, the Middle East, Australasia, and Africa.
