TSX Penny Stocks To Watch In March 2025

As the Canadian market navigates a period of economic adjustment, with inflation rising to 2.6% in February due to tax changes, investors are keeping a close watch on interest rate policies and their implications for growth. Penny stocks, often associated with smaller or newer companies, remain an intriguing investment area despite being considered somewhat niche today. With strong financials as a key criterion, these stocks can offer unique opportunities for those looking beyond larger firms for potential growth and value.

Top 10 Penny Stocks In Canada

Click here to see the full list of 937 stocks from our TSX Penny Stocks screener.

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

Roots (TSX:ROOT)

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

Overview: Roots Corporation, along with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally with a market cap of CA$96.60 million.

Operations: The company generates revenue through its Direct-To-Consumer segment, which accounts for CA$219.79 million, and its Partners and Other segment, contributing CA$40.56 million.

Market Cap: CA$96.6M

Roots Corporation, with a market cap of CA$96.60 million, is experiencing significant earnings growth, notably 918.7% over the past year, surpassing industry averages. However, its Return on Equity remains low at 1.6%, and interest payments are not well covered by EBIT. Debt management appears strong as operating cash flow covers debt well and net debt to equity is satisfactory at 26.1%. Despite a large one-off loss impacting recent results, Roots has improved its profit margins to 1.1% from last year's 0.1%. The board's seasoned experience adds stability amidst these financial dynamics.

• Dive into the specifics of Roots here with our thorough balance sheet health report.
• Gain insights into Roots' future direction by reviewing our growth report.

Voyageur Pharmaceuticals (TSXV:VM)

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

Overview: Voyageur Pharmaceuticals Ltd. is involved in acquiring, exploring, and developing raw materials for pharmaceutical products in British Columbia, Canada, and Utah, with a market cap of CA$27.39 million.

Operations: Voyageur Pharmaceuticals Ltd. currently has no reported revenue segments.

Market Cap: CA$27.39M

Voyageur Pharmaceuticals Ltd., with a market cap of CA$27.39 million, is pre-revenue and has recently advanced its Frances Creek barium contrast media project, backed by a $600,000 grant from Alberta Innovates. This funding supports the production and clinical evaluation of high-purity barium sulfate for use in medical imaging, potentially enhancing market positioning. Despite having no significant revenue streams yet and short-term liabilities exceeding assets by CA$1.17 million, Voyageur's debt management is satisfactory with a net debt to equity ratio of 3.5%. The company remains volatile but has not faced shareholder dilution recently.

• Get an in-depth perspective on Voyageur Pharmaceuticals' performance by reading our balance sheet health report here.
• Review our historical performance report to gain insights into Voyageur Pharmaceuticals' track record.

Ynvisible Interactive (TSXV:YNV)

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

Overview: Ynvisible Interactive Inc. specializes in developing and selling electrochromic displays across Europe and North America, with a market cap of CA$18.80 million.

Operations: No revenue segments have been reported.

Market Cap: CA$18.8M

Ynvisible Interactive Inc., with a market cap of CA$18.80 million, is pre-revenue, generating less than US$1 million annually. Despite being unprofitable and experiencing increased losses over the past five years, the company remains debt-free and has sufficient cash runway for over a year based on current free cash flow estimates. Recent private placements raised CAD 547,651.80 and CAD 600,000 respectively, which may provide additional financial stability. The board's average tenure of 4.3 years suggests experienced leadership amid high share price volatility compared to most Canadian stocks. Short-term assets exceed liabilities by CA$3.8 million, indicating sound liquidity management.

• Click here to discover the nuances of Ynvisible Interactive with our detailed analytical financial health report.
• Evaluate Ynvisible Interactive's historical performance by accessing our past performance report.

Make It Happen

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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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