Discover 3 Canadian Penny Stocks On TSX With Market Caps Under CA$300M

As the Canadian market enters 2025, investors are reflecting on a stellar 2024, where the TSX gained 18% and broader indices saw significant growth. For those looking beyond the traditional large-cap stocks, penny stocks—often representing smaller or newer companies—remain an intriguing area of exploration. Despite being an older term, penny stocks continue to attract interest for their potential value and growth opportunities when backed by strong financial health.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
Mandalay Resources (TSX:MND)	CA$4.14	CA$384.09M	★★★★★★
Pulse Seismic (TSX:PSD)	CA$2.40	CA$123.03M	★★★★★★
Silvercorp Metals (TSX:SVM)	CA$4.46	CA$957.27M	★★★★★★
Findev (TSXV:FDI)	CA$0.485	CA$14.32M	★★★★★★
PetroTal (TSX:TAL)	CA$0.68	CA$601.94M	★★★★★★
Foraco International (TSX:FAR)	CA$2.37	CA$236.24M	★★★★★☆
NamSys (TSXV:CTZ)	CA$1.13	CA$30.62M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.05	CA$4.07M	★★★★★★
Hemisphere Energy (TSXV:HME)	CA$1.84	CA$178.48M	★★★★★☆
Tornado Infrastructure Equipment (TSXV:TGH)	CA$0.95	CA$133.43M	★★★★★☆

Click here to see the full list of 945 stocks from our TSX Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Aclara Resources (TSX:ARA)

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

Overview: Aclara Resources Inc. is a mining company focused on the exploration and development of rare-earth mineral resources in Chile, with a market cap of CA$88.20 million.

Operations: No revenue segments have been reported.

Market Cap: CA$88.2M

Aclara Resources Inc., with a market cap of CA$88.20 million, is pre-revenue and focused on rare-earth mineral development in Chile. Despite being debt-free and having sufficient short-term assets to cover liabilities, the company remains unprofitable with increasing losses over the past five years. Recent strategic moves include a non-brokered private placement raising CA$35.91 million, aimed at bolstering its financial position. Aclara's collaboration with SelectUSA for a U.S.-based separation facility highlights its expansion efforts, while engineering studies emphasize environmentally sustainable practices in rare earths extraction and processing, potentially positioning it as an independent supply chain player outside Asia.

• Dive into the specifics of Aclara Resources here with our thorough balance sheet health report.
• Examine Aclara Resources' earnings growth report to understand how analysts expect it to perform.

DIRTT Environmental Solutions (TSX:DRT)

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

Overview: DIRTT Environmental Solutions Ltd. is an interior construction company based in Canada with a market cap of CA$226.29 million.

Operations: The company generates revenue of $176.36 million from its Building Products segment.

Market Cap: CA$226.29M

DIRTT Environmental Solutions, with a market cap of CA$226.29 million, has shown signs of financial improvement by becoming profitable recently, reporting a net income of US$7.09 million for Q3 2024. The company has initiated a share repurchase program to buy back up to 3.89% of its shares, potentially enhancing shareholder value. Despite high return on equity at 29.2%, challenges remain as interest payments are not well covered by EBIT and the board lacks experience with an average tenure under three years. DIRTT's short-term assets exceed liabilities, providing some financial stability amidst these dynamics.

• Click to explore a detailed breakdown of our findings in DIRTT Environmental Solutions' financial health report.
• Learn about DIRTT Environmental Solutions' historical performance here.

Majestic Gold (TSXV:MJS)

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

Overview: Majestic Gold Corp. is a mining company engaged in the exploration, development, and operation of mining properties across China, Australia, and Canada with a market cap of CA$83.41 million.

Operations: The company generates $66.19 million from its activities in the exploration, development, and operation of mining properties.

Market Cap: CA$83.41M

Majestic Gold Corp., with a market cap of CA$83.41 million, has demonstrated financial stability and growth potential. The company reported significant earnings growth over the past year, with net income rising to US$3.05 million for Q3 2024, up from US$2.02 million the previous year, and sales reaching US$18.35 million compared to US$12.24 million a year ago. Majestic's short-term assets of $108.7M comfortably cover its liabilities, and it maintains a debt-free status which enhances its financial flexibility. Despite stable weekly volatility at 10%, Return on Equity remains low at 11.4%.

• Unlock comprehensive insights into our analysis of Majestic Gold stock in this financial health report.
• Assess Majestic Gold's previous results with our detailed historical performance reports.

Turning Ideas Into Actions

• Take a closer look at our TSX Penny Stocks list of 945 companies by clicking here.
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Interested In Other Possibilities?

• 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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