3 TSX Penny Stocks With Market Caps Under CA$200M

As the Canadian market experiences moderate growth, with the TSX up about 3% this year, investors are keenly observing economic indicators such as inflation and interest rates which have shown signs of stabilization. In this context, penny stocks—typically smaller or newer companies—offer intriguing opportunities for those seeking growth at lower price points. Despite being an outdated term, these stocks can present significant potential when backed by strong financials and sound fundamentals.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
Alvopetro Energy (TSXV:ALV)	CA$4.83	CA$176.58M	★★★★★★
Mandalay Resources (TSX:MND)	CA$4.83	CA$453.58M	★★★★★★
Findev (TSXV:FDI)	CA$0.52	CA$14.9M	★★★★★★
PetroTal (TSX:TAL)	CA$0.69	CA$632.31M	★★★★★★
NamSys (TSXV:CTZ)	CA$1.20	CA$32.24M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.045	CA$4.07M	★★★★★★
Orezone Gold (TSX:ORE)	CA$0.90	CA$416.19M	★★★★★☆
New Gold (TSX:NGD)	CA$4.02	CA$3.18B	★★★★★☆
Foraco International (TSX:FAR)	CA$2.00	CA$197.39M	★★★★★☆
DIRTT Environmental Solutions (TSX:DRT)	CA$1.08	CA$208.88M	★★★★☆☆

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.

Dundee (TSX:DC.A)

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

Overview: Dundee Corporation is a publicly owned investment manager with a market cap of CA$178.83 million.

Operations: The company generates revenue primarily from its Mining Services segment, which accounts for CA$1.73 million, and Corporate and Others segment, contributing CA$4.22 million.

Market Cap: CA$178.83M

Dundee Corporation, with a market cap of CA$178.83 million, has recently turned profitable after several years of growth, achieving an annual earnings increase of 44.6% over the past five years. Despite having limited revenue (CA$5 million), its low price-to-earnings ratio (2.8x) suggests it might be undervalued compared to the broader Canadian market. The company benefits from experienced management and board teams and boasts a strong financial position with short-term assets significantly exceeding both short-term and long-term liabilities. However, challenges remain as operating cash flow is negative, impacting debt coverage capabilities.

• Dive into the specifics of Dundee here with our thorough balance sheet health report.
• Review our historical performance report to gain insights into Dundee's track record.

Payfare (TSX:PAY)

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

Overview: Payfare Inc. is a financial technology company offering instant payout and digital banking solutions to gig economy workers in Canada, the United States, and Mexico, with a market cap of CA$192.67 million.

Operations: The company generates revenue from its data processing services, amounting to CA$216.87 million.

Market Cap: CA$192.67M

Payfare Inc., a financial technology company, has shown significant earnings growth of 74.3% over the past year, surpassing the industry average. It boasts a high return on equity of 22.2% and maintains a debt-free balance sheet with short-term assets exceeding liabilities. Despite its volatile share price, Payfare's profitability has improved with net profit margins rising to 8.9%. The company is currently undergoing an acquisition by Fiserv's affiliate at CA$4 per share, offering a substantial premium to shareholders despite some opposition claiming undervaluation concerns. Shareholders have approved this transaction at the recent special meeting.

• Take a closer look at Payfare's potential here in our financial health report.
• Review our growth performance report to gain insights into Payfare's future.

Finlay Minerals (TSXV:FYL)

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

Overview: Finlay Minerals Ltd. is engaged in the acquisition and exploration of base and precious metal deposits in northern British Columbia, Canada, with a market cap of CA$19.62 million.

Operations: Finlay Minerals Ltd. has not reported any revenue segments.

Market Cap: CA$19.62M

Finlay Minerals Ltd., a pre-revenue exploration company, focuses on its PIL and ATTY properties in British Columbia's Toodoggone district. Recent developments include identifying multiple porphyry and epithermal targets, with significant mineralization at the PIL South target. Despite its unprofitable status and negative return on equity, Finlay remains debt-free with a stable cash runway exceeding three years. The company's short-term assets surpass liabilities, although long-term liabilities remain uncovered. With an experienced management team and board, Finlay plans further exploration in 2025 to delineate drill targets around promising discoveries near property boundaries.

• Unlock comprehensive insights into our analysis of Finlay Minerals stock in this financial health report.
• Understand Finlay Minerals' track record by examining our performance history report.

Seize The Opportunity

• Discover the full array of 934 TSX Penny Stocks right 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.
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Curious About Other Options?

• 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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