TSX Penny Stocks Under CA$10M Market Cap To Watch

The Canadian market is currently navigating shifting expectations from the Federal Reserve, with recent economic data and inflation surprises prompting a reevaluation of future interest rate paths. In this context, investors may find opportunities in penny stocks, which despite their somewhat outdated name, continue to represent a viable investment area for those interested in smaller or newer companies. These stocks can offer surprising value and potential growth at lower price points while maintaining financial resilience.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
PetroTal (TSX:TAL)	CA$0.65	CA$602.45M	★★★★★★
Alvopetro Energy (TSXV:ALV)	CA$4.85	CA$182.69M	★★★★★★
Pulse Seismic (TSX:PSD)	CA$2.39	CA$119.63M	★★★★★★
Findev (TSXV:FDI)	CA$0.40	CA$11.46M	★★★★★☆
Winshear Gold (TSXV:WINS)	CA$0.18	CA$5.66M	★★★★★★
Mandalay Resources (TSX:MND)	CA$3.40	CA$327.12M	★★★★★★
Amerigo Resources (TSX:ARG)	CA$1.71	CA$291.81M	★★★★★☆
NamSys (TSXV:CTZ)	CA$1.07	CA$28.74M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.045	CA$4.07M	★★★★★★
Enterprise Group (TSX:E)	CA$2.10	CA$129.82M	★★★★☆☆

Click here to see the full list of 954 stocks from our TSX Penny Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Radio Fuels Energy (CNSX:CAKE)

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

Overview: Radio Fuels Energy Corp., with a market cap of CA$19.49 million, is a mineral exploration company focused on acquiring, exploring, and evaluating mineral resource properties.

Operations: Radio Fuels Energy Corp. has not reported any revenue segments.

Market Cap: CA$19.49M

Radio Fuels Energy Corp., with a market cap of CA$19.49 million, is pre-revenue and focuses on mineral exploration. Recently, it reported a net income of CA$3.34 million for the nine months ending August 31, 2024, marking an improvement from previous losses. The company remains debt-free and has sufficient cash runway for over three years based on current free cash flow levels. However, its share price has been highly volatile and shareholders experienced dilution with an 8.2% increase in shares outstanding over the past year. The board's average tenure is only 0.7 years, indicating inexperience among directors.

• Jump into the full analysis health report here for a deeper understanding of Radio Fuels Energy.
• Assess Radio Fuels Energy's previous results with our detailed historical performance reports.

BluMetric Environmental (TSXV:BLM)

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

Overview: BluMetric Environmental Inc. offers solutions for environmental issues globally, with a market cap of CA$25.47 million.

Operations: The company's revenue is primarily derived from its Waste Management segment, which generated CA$34.02 million.

Market Cap: CA$25.47M

BluMetric Environmental Inc., with a market cap of CA$25.47 million, has shown financial improvement by becoming profitable this year, reporting net income for the third quarter and nine months ending June 30, 2024. Despite past shareholder dilution and low return on equity, the company maintains a strong balance sheet with short-term assets exceeding liabilities and more cash than total debt. Recent developments include securing an $830,000 contract to supply water purification systems to a remote First Nations community in British Columbia. The management team is seasoned with an average tenure of five years, providing stability amidst its growth trajectory.

• Click here and access our complete financial health analysis report to understand the dynamics of BluMetric Environmental.
• Examine BluMetric Environmental's past performance report to understand how it has performed in prior years.

Black Swan Graphene (TSXV:SWAN)

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

Overview: Black Swan Graphene Inc. focuses on producing and commercializing patented graphene products for industrial sectors in Canada, with a market cap of CA$28.66 million.

Operations: Black Swan Graphene Inc. has not reported any revenue segments.

Market Cap: CA$28.66M

Black Swan Graphene Inc., with a market cap of CA$28.66 million, remains pre-revenue and unprofitable. The company is debt-free and has sufficient cash runway for over a year, supported by short-term assets of CA$4.8M exceeding liabilities of CA$188K. Despite stable weekly volatility at 11%, the board's average tenure is relatively new at 2.2 years, though management shows experience with similar tenure. Recent earnings reports indicate reduced net losses compared to last year, reflecting some financial improvement despite ongoing challenges in achieving profitability and meaningful revenue generation in the near term.

• Click here to discover the nuances of Black Swan Graphene with our detailed analytical financial health report.
• Assess Black Swan Graphene's future earnings estimates with our detailed growth reports.

Next Steps

• Take a closer look at our TSX Penny Stocks list of 954 companies by clicking here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready For A Different Approach?

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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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