ASX Penny Stocks To Watch In September 2026

The Australian market is poised for a cautious start, with the S&P/ASX 200 expected to open lower following Wall Street's downturn amid rising oil prices and geopolitical tensions in the Middle East. In such uncertain times, investors often look beyond established giants to explore opportunities in lesser-known areas of the market. Penny stocks, though sometimes perceived as relics of past trading days, can still offer intriguing prospects when backed by robust financials. These smaller or newer companies may present unique opportunities for investors seeking hidden value and potential growth.

Here's a peek at a few of the choices from the screener.

EDU Holdings (ASX:EDU)

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

Overview: EDU Holdings Limited, with a market cap of A$146.97 million, operates through its subsidiaries to offer tertiary education services in Australia.

Operations: The company's revenue segment is primarily derived from its operations in Australia, amounting to A$82.40 million.

Market Cap: A$146.97M

EDU Holdings Limited has demonstrated significant growth, with earnings increasing by a substantial 101.8% over the past year, surpassing both its five-year average and industry growth rates. The company reported half-year revenue of A$54.28 million, up from A$36.1 million the previous year, and net income rose to A$9.32 million. EDU is debt-free and offers high-quality earnings with an impressive return on equity of 103%. However, short-term liabilities slightly exceed short-term assets by A$4.9 million. Recent board changes include appointing John Eales AM as an Independent Non-Executive Director to strengthen governance further.

• Click here and access our complete financial health analysis report to understand the dynamics of EDU Holdings.
• Gain insights into EDU Holdings' outlook and expected performance with our report on the company's earnings estimates.

Iondrive (ASX:ION)

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

Overview: Iondrive Limited focuses on developing and commercializing battery technology alongside lithium exploration, with a market capitalization of A$98.51 million.

Operations: Iondrive Limited has not reported any specific revenue segments.

Market Cap: A$98.51M

Iondrive Limited, with a market cap of A$98.51 million, remains pre-revenue and has experienced increased losses year-over-year, reporting a net loss of A$7.02 million for the fiscal year ending June 2026. The company's strategy focuses on developing its IONSolv™ technology for critical mineral extraction, bolstered by the recent appointment of Dr. Grant Caffery as CEO to drive commercialization efforts across key markets. Despite high volatility and an inexperienced management team, Iondrive maintains a strong cash position with assets exceeding liabilities and no debt burden, providing some financial stability amid ongoing operational challenges.

• Jump into the full analysis health report here for a deeper understanding of Iondrive.
• Gain insights into Iondrive's historical outcomes by reviewing our past performance report.

Michael Hill International (ASX:MHJ)

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

Overview: Michael Hill International Limited engages in the retail sale of jewellery and related services across Australia, New Zealand, and Canada, with a market cap of A$150.09 million.

Operations: The company's revenue for the period was A$658.81 million, primarily generated from its retail jewellery sales and related services across Australia, New Zealand, and Canada.

Market Cap: A$150.09M

Michael Hill International Limited, with a market cap of A$150.09 million, reported full-year sales of A$655.68 million and net income of A$10 million for the year ended June 28, 2026. The company's earnings have grown significantly over the past year by 377.6%, although they declined by an average of 47.7% annually over five years. Short-term assets exceed both short- and long-term liabilities, indicating strong liquidity. Despite a low return on equity at 5.8% and increased debt levels from zero to an 11.6% debt-to-equity ratio over five years, its operating cash flow sufficiently covers its debt obligations at nearly five times coverage.

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

Next Steps

• Navigate through the entire inventory of 393 ASX Penny Stocks here.
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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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