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

The Canadian market is showing strong momentum as it heads into 2025, supported by resilient consumer spending, rising corporate profits, and the beginning of a rate-cutting cycle. While optimism is high, investors are advised to remain cautious of potential challenges and consider diversifying their portfolios with value-style investments. Penny stocks—though an older term—continue to present unique opportunities for growth in smaller or newer companies that demonstrate financial strength and long-term potential.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
Alvopetro Energy (TSXV:ALV)	CA$4.54	CA$160.38M	★★★★★★
Amerigo Resources (TSX:ARG)	CA$1.74	CA$281.86M	★★★★★☆
Pulse Seismic (TSX:PSD)	CA$2.34	CA$120.59M	★★★★★★
PetroTal (TSX:TAL)	CA$0.63	CA$565.76M	★★★★★★
Mandalay Resources (TSX:MND)	CA$3.52	CA$335.5M	★★★★★★
Vox Royalty (TSX:VOXR)	CA$3.89	CA$187.19M	★★★★★★
Findev (TSXV:FDI)	CA$0.455	CA$13.03M	★★★★★☆
Foraco International (TSX:FAR)	CA$2.18	CA$215.73M	★★★★★☆
NamSys (TSXV:CTZ)	CA$1.07	CA$28.74M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.04	CA$3.62M	★★★★★★

Click here to see the full list of 962 stocks from our TSX Penny Stocks screener.

Let's dive into some prime choices out of the screener.

C21 Investments (CNSX:CXXI)

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

Overview: C21 Investments Inc. is an integrated cannabis company that cultivates, processes, distributes, and sells cannabis and hemp-derived consumer products in the United States with a market cap of CA$30.01 million.

Operations: The company generates revenue from its cannabis cultivation segment, which amounted to $26.79 million.

Market Cap: CA$30.01M

C21 Investments Inc., with a market cap of CA$30.01 million, operates in the cannabis sector and reported sales of US$7.51 million for Q2 2024, reflecting its active revenue generation despite ongoing unprofitability. The company has a seasoned management team and board, with average tenures of over five years, contributing to strategic stability. Although C21's share price remains highly volatile compared to most Canadian stocks, it benefits from a strong cash position that exceeds its total debt and supports a cash runway exceeding three years if current free cash flow trends persist. However, short-term liabilities surpass short-term assets by US$6.9 million.

• Take a closer look at C21 Investments' potential here in our financial health report.
• Gain insights into C21 Investments' historical outcomes by reviewing our past performance report.

Alithya Group (TSX:ALYA)

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

Overview: Alithya Group Inc. offers strategy and digital technology services across Canada, the United States, and Europe, with a market cap of CA$163.87 million.

Operations: The company generates revenue from its Management Consulting Services, amounting to CA$473.43 million.

Market Cap: CA$163.87M

Alithya Group Inc., with a market cap of CA$163.87 million, presents a mixed picture for penny stock investors. The company generates substantial revenue, reporting CA$111.51 million in sales for Q2 2024, though it remains unprofitable with a net loss of CA$0.27 million. Alithya's financial stability is supported by short-term assets exceeding both short and long-term liabilities and a positive free cash flow ensuring over three years of cash runway despite high debt levels (net debt to equity at 55.5%). Recent executive changes include the appointment of Nicolas Lavoie as CFO, potentially enhancing strategic financial management and growth through acquisitions.

• Get an in-depth perspective on Alithya Group's performance by reading our balance sheet health report here.
• Explore Alithya Group's analyst forecasts in our growth report.

Palisades Goldcorp (TSXV:PALI)

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

Overview: Palisades Goldcorp Ltd. is a resource investment company and merchant bank that invests in junior companies within the resource and mining sector, with a market cap of CA$85.27 million.

Operations: The revenue segment for Palisades Goldcorp Ltd. is Metals & Mining - Gold & Other Precious Metals, with reported revenues of -CA$2.65 million.

Market Cap: CA$85.27M

Palisades Goldcorp Ltd., with a market cap of CA$85.27 million, offers a complex profile for penny stock investors. Despite being pre-revenue, it has shown improvement in revenue from negative figures to CA$1.26 million in Q3 2024, though it remains unprofitable with a net loss of CA$4.79 million for the quarter. The company benefits from having no debt and a cash runway exceeding three years due to positive free cash flow growth. However, challenges include its removal from the S&P/TSX Venture Composite Index and significant long-term liabilities not covered by current assets.

• Jump into the full analysis health report here for a deeper understanding of Palisades Goldcorp.
• Learn about Palisades Goldcorp's historical performance here.

Turning Ideas Into Actions

• Click this link to deep-dive into the 962 companies within our TSX Penny Stocks screener.
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Searching for a Fresh Perspective?

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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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