3 TSX Penny Stocks With Market Caps Over CA$20M To Watch

As Canada navigates market volatility fueled by newly announced tariffs and inflation concerns, investors are keen to focus on what's known while seeking opportunities in less conventional areas. Penny stocks, though an older term, continue to represent smaller or newer companies that may offer significant potential for growth at accessible price points. By identifying those with strong financials and clear growth prospects, investors can uncover hidden gems within the Canadian market that might provide both stability and potential upside.

Top 10 Penny Stocks In Canada

Click here to see the full list of 925 stocks from our TSX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Orbit Garant Drilling (TSX:OGD)

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

Overview: Orbit Garant Drilling Inc. offers mineral drilling services across Canada, the United States, Central and South America, and West Africa, with a market cap of CA$45.14 million.

Operations: The company generates revenue from its operations in Canada, amounting to CA$136.21 million.

Market Cap: CA$45.14M

Orbit Garant Drilling Inc. has shown a turnaround by becoming profitable, reporting net income of CA$4.72 million for the six months ending December 2024, compared to a loss previously. The company maintains strong short-term financial health with assets of CA$82.7 million exceeding both short and long-term liabilities. However, its return on equity is low at 8.6%, and it carries high debt levels with a net debt to equity ratio of 51.2%. Recent share buybacks indicate management's confidence in the stock's value, while stable weekly volatility suggests consistent performance amidst market fluctuations.

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

Eco (Atlantic) Oil & Gas (TSXV:EOG)

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

Overview: Eco (Atlantic) Oil & Gas Ltd. focuses on identifying, acquiring, exploring, and developing petroleum, natural gas, and shale gas properties in Namibia and Guyana with a market cap of CA$50.44 million.

Operations: Eco (Atlantic) Oil & Gas Ltd. currently does not report any revenue segments.

Market Cap: CA$50.44M

Eco (Atlantic) Oil & Gas Ltd. is a pre-revenue company with a market cap of CA$50.44 million, focusing on petroleum and gas exploration in Namibia and Guyana. Despite being debt-free, it faces financial challenges with less than a year of cash runway based on current free cash flow, though this extends to 2.1 years if reductions continue at historical rates. Recent earnings show minimal revenue growth to US$0.052 million for the third quarter of 2024, alongside increased net losses over nine months to US$3.67 million from US$2.78 million previously. A new board member, Emily Ferguson, brings extensive industry experience from TotalEnergies and Maersk Oil.

• Click here and access our complete financial health analysis report to understand the dynamics of Eco (Atlantic) Oil & Gas.
• Examine Eco (Atlantic) Oil & Gas' earnings growth report to understand how analysts expect it to perform.

Royal Road Minerals (TSXV:RYR)

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

Overview: Royal Road Minerals Limited is involved in the exploration and development of mineral properties across Saudi Arabia, Morocco, Colombia, and Nicaragua with a market cap of CA$29.23 million.

Operations: Currently, there are no reported revenue segments for the company.

Market Cap: CA$29.23M

Royal Road Minerals Limited, with a market cap of CA$29.23 million, operates as a pre-revenue entity focused on mineral exploration in various countries. Recent drilling results from the Alouana project in Morocco were not promising enough to warrant further investment, leading to withdrawal from an option agreement. Despite its lack of debt and sufficient cash runway exceeding three years based on current free cash flow, the company faces challenges with high volatility and negative return on equity due to unprofitability. The experienced management and board provide some stability amidst these uncertainties in the penny stock landscape.

• Unlock comprehensive insights into our analysis of Royal Road Minerals stock in this financial health report.
• Review our historical performance report to gain insights into Royal Road Minerals' track record.

Where To Now?

• Jump into our full catalog of 925 TSX Penny Stocks 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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