3 TSX Penny Stocks With Market Caps Over CA$3M

Amidst a backdrop of stabilizing yields and moderating inflation, the Canadian market has shown resilience, with the TSX posting modest gains. Penny stocks, a term that may seem outdated yet remains relevant, represent smaller or less-established companies that can offer unique investment opportunities. By focusing on those with strong financials and potential for growth, investors might uncover promising candidates within this niche segment of the market.

Top 10 Penny Stocks In Canada

Click here to see the full list of 934 stocks from our TSX Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Corcel Exploration (CNSX:CRCL)

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

Overview: Corcel Exploration Inc. is a mineral exploration company focused on acquiring, exploring, and evaluating mineral resource properties, with a market cap of CA$3.19 million.

Operations: Corcel Exploration Inc. currently does not report any revenue segments.

Market Cap: CA$3.19M

Corcel Exploration Inc., with a market cap of CA$3.19 million, is pre-revenue and unprofitable but has reduced losses over the past five years by 12.1% annually. The company is debt-free and its short-term assets significantly surpass its short-term liabilities, providing financial stability despite a volatile share price. Recent board changes include Jon Ward's appointment, bringing extensive experience in investor relations and business development to the team. Corcel has a cash runway extending beyond a year based on current free cash flow levels, supporting ongoing exploration activities without immediate capital pressure.

• Click here to discover the nuances of Corcel Exploration with our detailed analytical financial health report.
• Gain insights into Corcel Exploration's historical outcomes by reviewing our past performance report.

CanAsia Energy (TSXV:CEC)

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

Overview: CanAsia Energy Corp. is a junior oil and gas company with a market cap of CA$9.02 million.

Operations: CanAsia Energy Corp. currently does not report any revenue segments.

Market Cap: CA$9.02M

CanAsia Energy Corp., with a market cap of CA$9.02 million, is pre-revenue but has recently achieved profitability, distinguishing it from many penny stocks. The company is debt-free and maintains financial stability with short-term assets of CA$7.8 million exceeding its liabilities. Despite a volatile share price, CanAsia's Price-To-Earnings ratio of 10.4x suggests potential value compared to the broader Canadian market at 14.9x. However, the board's average tenure of 2.5 years indicates limited experience, which may impact strategic direction as the company navigates its growth phase in the oil and gas sector.

• Get an in-depth perspective on CanAsia Energy's performance by reading our balance sheet health report here.
• Understand CanAsia Energy's track record by examining our performance history report.

RE Royalties (TSXV:RE)

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

Overview: RE Royalties Ltd. acquires revenue-based royalties from renewable energy and clean technology companies, offering non-dilutive royalty financing solutions, with a market cap of CA$20.77 million.

Operations: The company's revenue segment is derived from Financial Services - Commercial, generating CA$3.25 million.

Market Cap: CA$20.77M

RE Royalties Ltd., with a market cap of CA$20.77 million, is focused on renewable energy royalties but remains unprofitable and has seen earnings decline by 25.4% annually over the past five years. Despite this, the company maintains strong liquidity, with short-term assets of CA$57.2 million surpassing both its short and long-term liabilities. Recent financial activities include raising CA$6.53 million through green bond issuances to fund sustainable projects, reflecting a commitment to environmental goals despite high debt levels and negative return on equity (-5.81%). Dividend sustainability remains questionable due to insufficient coverage by earnings or cash flows.

• Navigate through the intricacies of RE Royalties with our comprehensive balance sheet health report here.
• Evaluate RE Royalties' historical performance by accessing our past performance report.

Next Steps

• Discover the full array of 934 TSX Penny Stocks right here.
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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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