Spotlight On 3 Penny Stocks With Market Caps Under US$400M

Amid a week marked by busy earnings reports and mixed economic signals, global markets have seen fluctuations, with major indices like the Nasdaq Composite and S&P MidCap 400 experiencing highs before retreating. In such a volatile landscape, investors often look beyond large-cap stocks for opportunities that may offer growth potential at more accessible price points. Penny stocks, though an older term, continue to attract attention for their potential as they often represent smaller or newer companies with the possibility of significant upside when backed by strong financials.

Top 10 Penny Stocks

Name	Share Price	Market Cap	Financial Health Rating
DXN Holdings Bhd (KLSE:DXN)	MYR0.57	MYR2.83B	★★★★★★
Lever Style (SEHK:1346)	HK$0.81	HK$514.18M	★★★★★★
Rexit Berhad (KLSE:REXIT)	MYR0.73	MYR126.45M	★★★★★★
Hil Industries Berhad (KLSE:HIL)	MYR0.89	MYR295.43M	★★★★★★
BP Plastics Holding Bhd (KLSE:BPPLAS)	MYR1.25	MYR351.85M	★★★★★★
FRP Advisory Group (AIM:FRP)	£1.47	£347M	★★★★★★
Wellcall Holdings Berhad (KLSE:WELLCAL)	MYR1.53	MYR761.86M	★★★★★★
Kelington Group Berhad (KLSE:KGB)	MYR3.01	MYR2.07B	★★★★★☆
Embark Early Education (ASX:EVO)	A$0.77	A$143.12M	★★★★☆☆
Next 15 Group (AIM:NFG)	£3.94	£397.82M	★★★★☆☆

Click here to see the full list of 5,813 stocks from our Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Greenland Resources (DB:M0LY)

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

Overview: Greenland Resources Inc. is a mining company focused on acquiring, exploring, and developing mineral projects in Greenland, with a market cap of €44.76 million.

Operations: Greenland Resources Inc. currently does not report any revenue segments.

Market Cap: €44.76M

Greenland Resources Inc. is a pre-revenue mining company with a market cap of €44.76 million, focusing on the Malmbjerg Molybdenum Project in Greenland. Despite being debt-free and having short-term assets exceeding liabilities, it faces financial challenges with less than a year of cash runway and increased losses over five years at 23.8% annually. Recent announcements highlight progress on its project, including environmental assessments and community engagement plans, but the company remains unprofitable with volatile stock performance and negative return on equity at -224.41%. The board is experienced but management tenure data is insufficient for assessment.

• Click here and access our complete financial health analysis report to understand the dynamics of Greenland Resources.
• Explore historical data to track Greenland Resources' performance over time in our past results report.

EROAD (NZSE:ERD)

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

Overview: EROAD Limited offers electronic on-board units and software as a service to the transport industry across New Zealand, Australia, the United States, and internationally, with a market cap of NZ$184.91 million.

Operations: The company's revenue segments include NZ$92 million from New Zealand, NZ$80 million from North America, NZ$10.7 million from Australia, and NZ$75 million from Corporate & Development activities.

Market Cap: NZ$184.91M

EROAD Limited, with a market cap of NZ$184.91 million, is unprofitable but shows promising growth prospects with earnings forecasted to increase by 41.6% annually. The company has a stable financial position, as its short-term assets exceed both short and long-term liabilities, and it maintains a satisfactory net debt to equity ratio of 7.3%. Despite high stock volatility and an inexperienced management team averaging 0.7 years in tenure, EROAD's collaboration with Geotab aims to enhance its fleet management offerings in Australia and New Zealand through the launch of EROAD Locate, potentially expanding its market reach significantly.

• Navigate through the intricacies of EROAD with our comprehensive balance sheet health report here.
• Evaluate EROAD's prospects by accessing our earnings growth report.

Bangkok Land (SET:BLAND)

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

Overview: Bangkok Land Public Company Limited operates in real estate development, exhibition and convention services, food and beverage, education, and hotel investments in Thailand with a market cap of THB10.76 billion.

Operations: The company's revenue is primarily derived from its Exhibition Center Business at THB3.80 billion, followed by the Real Estate Business at THB622 million, Retail Business at THB443 million, and Other Service at THB185 million.

Market Cap: THB10.76B

Bangkok Land Public Company Limited, with a market cap of THB10.76 billion, reported significant earnings growth for the first quarter of 2024, achieving net income of THB76.58 million compared to a net loss previously. The company's short-term assets exceed its long-term liabilities (THB5.7 billion vs THB4.9 billion), though they fall short in covering short-term liabilities (THB6.6 billion). Despite low return on equity at 2.8% and limited debt coverage by operating cash flow, the company benefits from well-covered interest payments and an experienced board averaging 14.2 years in tenure, positioning it as a potentially stable investment within its sector.

• Click to explore a detailed breakdown of our findings in Bangkok Land's financial health report.
• Assess Bangkok Land's previous results with our detailed historical performance reports.

Taking Advantage

• Click here to access our complete index of 5,813 Penny Stocks.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready To Venture Into Other Investment Styles?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com