3 TSX Penny Stocks With Market Caps Under CA$50M

The early days of 2025 have been marked by significant market headlines, including the rapid rise in bond yields, which has created both challenges and opportunities for investors. Amidst these shifting conditions, stocks with strong earnings potential can still attract attention, particularly those that offer a mix of affordability and growth potential. Penny stocks—often representing smaller or newer companies—remain relevant as they can provide unique opportunities for investors seeking to explore beyond the more prominent names in the market.

Top 10 Penny Stocks In Canada

Name	Share Price	Market Cap	Financial Health Rating
Silvercorp Metals (TSX:SVM)	CA$4.45	CA$976.85M	★★★★★★
Mandalay Resources (TSX:MND)	CA$4.18	CA$401.93M	★★★★★★
Pulse Seismic (TSX:PSD)	CA$2.41	CA$122.01M	★★★★★★
Findev (TSXV:FDI)	CA$0.465	CA$14.32M	★★★★★★
PetroTal (TSX:TAL)	CA$0.70	CA$651.02M	★★★★★★
Foraco International (TSX:FAR)	CA$2.35	CA$222.46M	★★★★★☆
NamSys (TSXV:CTZ)	CA$1.11	CA$32.24M	★★★★★★
East West Petroleum (TSXV:EW)	CA$0.04	CA$3.62M	★★★★★★
Hemisphere Energy (TSXV:HME)	CA$1.83	CA$179.61M	★★★★★☆
Tornado Infrastructure Equipment (TSXV:TGH)	CA$1.03	CA$137.56M	★★★★★☆

Click here to see the full list of 936 stocks from our TSX Penny Stocks screener.

Let's uncover some gems from our specialized screener.

Findev (TSXV:FDI)

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

Overview: Findev Inc., with a market cap of CA$14.32 million, is a real estate finance company offering secured financing for investment properties and real estate developments in the Greater Toronto Area, Canada.

Operations: The company generates CA$3.71 million from its computer graphics segment.

Market Cap: CA$14.32M

Findev Inc. has shown significant earnings growth, with a 56% increase over the past year compared to its 5-year average of 2.8%. Despite having low return on equity at 8.8%, it maintains high profit margins of 61.7% and operates debt-free, which reduces financial risk. The company’s short-term assets significantly surpass its liabilities, indicating strong liquidity management. However, its revenue remains limited at CA$4 million, raising concerns about long-term sustainability without substantial revenue growth. Recent dividend announcements suggest a commitment to shareholder returns but highlight potential challenges in covering dividends with free cash flow alone.

• Dive into the specifics of Findev here with our thorough balance sheet health report.
• Evaluate Findev's historical performance by accessing our past performance report.

SSC Security Services (TSXV:SECU)

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

Overview: SSC Security Services Corp. offers cyber, physical, and electronic security services to commercial, industrial, and public sector clients in Canada with a market cap of CA$47.78 million.

Operations: The company's revenue is primarily derived from its Security segment, which accounts for CA$120.88 million, complemented by CA$4.33 million from its Corporate segment.

Market Cap: CA$47.78M

SSC Security Services Corp. demonstrates robust financial health with short-term assets of CA$39.6 million exceeding both its short and long-term liabilities, while maintaining a debt-free status. The company has achieved substantial earnings growth of 583.6% over the past year, surpassing industry benchmarks, though its return on equity remains low at 0.9%. It recently reported increased sales and net income for the fiscal year ending September 30, 2024. Despite offering a dividend yield of 4.58%, coverage by earnings or free cash flow is inadequate, posing sustainability concerns amidst ongoing share repurchase activities aimed at enhancing shareholder value.

• Navigate through the intricacies of SSC Security Services with our comprehensive balance sheet health report here.
• Understand SSC Security Services' track record by examining our performance history report.

Ynvisible Interactive (TSXV:YNV)

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

Overview: Ynvisible Interactive Inc. develops and sells electrochromic displays in Europe and North America, with a market cap of CA$18.15 million.

Operations: The company has not reported any specific revenue segments.

Market Cap: CA$18.15M

Ynvisible Interactive Inc., with a market cap of CA$18.15 million, operates in the electrochromic display sector and is pre-revenue, reporting less than US$1 million in sales. Despite being unprofitable with a negative return on equity, the company is debt-free and has sufficient cash runway for over a year. Recent collaborations indicate potential growth opportunities; partnerships to integrate its e-paper displays into security systems and transit signage highlight scalability prospects, while FDA-reviewed medical diagnostic applications suggest future market penetration. However, its share price remains highly volatile compared to most Canadian stocks.

• Click here and access our complete financial health analysis report to understand the dynamics of Ynvisible Interactive.
• Gain insights into Ynvisible Interactive's historical outcomes by reviewing our past performance report.

Seize The Opportunity

• Dive into all 936 of the TSX Penny Stocks we have identified here.
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Ready For A Different Approach?

• 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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