In the last week, the Australian market has stayed flat, but it is up 20% over the past year with earnings forecast to grow by 12% annually. In light of these conditions, identifying stocks with strong financials becomes crucial for investors seeking potential growth opportunities. While 'penny stocks' might seem like an outdated term, they represent smaller or newer companies that can offer a mix of affordability and growth potential; this article highlights three such stocks that stand out for their financial strength.
Name | Share Price | Market Cap | Financial Health Rating |
LaserBond (ASX:LBL) | A$0.555 | A$65.06M | ★★★★★★ |
Embark Early Education (ASX:EVO) | A$0.805 | A$128.44M | ★★★★☆☆ |
MaxiPARTS (ASX:MXI) | A$1.895 | A$104.82M | ★★★★★★ |
Austin Engineering (ASX:ANG) | A$0.50 | A$310.07M | ★★★★★☆ |
Helloworld Travel (ASX:HLO) | A$1.865 | A$300.41M | ★★★★★★ |
Navigator Global Investments (ASX:NGI) | A$1.72 | A$842.94M | ★★★★★☆ |
West African Resources (ASX:WAF) | A$1.71 | A$1.82B | ★★★★★★ |
Atlas Pearls (ASX:ATP) | A$0.13 | A$56.64M | ★★★★★★ |
GTN (ASX:GTN) | A$0.47 | A$92.11M | ★★★★★★ |
Joyce (ASX:JYC) | A$3.93 | A$115.92M | ★★★★★★ |
Click here to see the full list of 1,026 stocks from our ASX Penny Stocks screener.
We'll examine a selection from our screener results.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: BKI Investment Company Limited is a publicly owned investment manager with a market cap of A$1.42 billion.
Operations: The company generates revenue of A$68.34 million from the Securities Industry segment.
Market Cap: A$1.42B
BKI Investment Company Limited, with a market cap of A$1.42 billion, faces challenges with its dividend sustainability as its 4.46% yield is not well covered by earnings or free cash flows. Despite being debt-free and having stable weekly volatility of 2%, BKI's return on equity is low at 4.7%, and it experienced negative earnings growth over the past year. Revenue for the year ended June 30, 2024, was A$68.34 million, down from A$72.75 million the previous year, while net income also declined to A$64.39 million from A$70.07 million last year.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: NRW Holdings Limited, with a market cap of A$1.72 billion, offers diversified contract services to the resources and infrastructure sectors in Australia through its subsidiaries.
Operations: The company's revenue is derived from its Mining segment, which generated A$1.52 billion, followed by the MET and Civil segments with revenues of A$791.81 million and A$655.46 million respectively.
Market Cap: A$1.72B
NRW Holdings Limited, with a market cap of A$1.72 billion, has shown robust financial performance, reporting A$2.91 billion in sales and a net income of A$105.1 million for the year ended June 30, 2024. The company’s short-term assets comfortably exceed its liabilities, and its interest payments are well-covered by EBIT at 7.5 times coverage. While NRW's earnings growth over the past year outpaced the industry average, it recently filed a follow-on equity offering worth A$7.33 million which could impact shareholder value perception due to potential dilution concerns despite no significant dilution occurring in the past year.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: RPMGlobal Holdings Limited develops and provides mining software solutions across Australia, Asia, the Americas, Africa, and Europe with a market cap of A$657.72 million.
Operations: The company generates revenue from two primary segments: Advisory, contributing A$31.41 million, and Software, accounting for A$72.67 million.
Market Cap: A$657.72M
RPMGlobal Holdings Limited, with a market cap of A$657.72 million, has shown significant earnings growth, surpassing the software industry average. The company reported revenue of A$104.19 million for the year ending June 30, 2024, an increase from A$91.56 million the previous year. It remains debt-free and has improved its net profit margins to 8.6%. RPMGlobal's earnings guidance for 2025 is set between $120 million and $125 million in revenue. Its inclusion in the S&P/ASX Small Ordinaries and S&P/ASX 300 Indexes highlights its growing market recognition despite low return on equity at 15.5%.
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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