The Australian market is facing a slight downturn, with the local bourse set to dip following a flat session on Wall Street and ongoing tariff negotiations. Despite these broader challenges, penny stocks remain an intriguing investment area, offering opportunities for growth at lower price points. While the term may seem outdated, these smaller or newer companies can still present significant potential when backed by strong financials and sound fundamentals.

Name

Share Price

Market Cap

Financial Health Rating

Alfabs Australia (ASX:AAL)

A$0.41

A$117.5M

★★★★☆☆

EZZ Life Science Holdings (ASX:EZZ)

A$2.20

A$103.78M

★★★★★★

GTN (ASX:GTN)

A$0.595

A$113.45M

★★★★★★

IVE Group (ASX:IGL)

A$2.95

A$454.84M

★★★★★☆

Duratec (ASX:DUR)

A$1.43

A$360.92M

★★★★★☆

West African Resources (ASX:WAF)

A$2.29

A$2.61B

★★★★★★

Southern Cross Electrical Engineering (ASX:SXE)

A$1.755

A$464.04M

★★★★★★

Regal Partners (ASX:RPL)

A$3.02

A$1.02B

★★★★★★

Austco Healthcare (ASX:AHC)

A$0.36

A$131.15M

★★★★★★

CTI Logistics (ASX:CLX)

A$1.86

A$149.81M

★★★★☆☆

Click here to see the full list of 464 stocks from our ASX Penny Stocks screener.

Let’s uncover some gems from our specialized screener.

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

Overview: Alpha HPA Limited is a specialty metals and technology company with a market capitalization of A$1.07 billion.

Operations: The company’s revenue is primarily derived from its HPA First Project, contributing A$0.07 million.

Market Cap: A$1.07B

Alpha HPA, with a market capitalization of A$1.07 billion, is currently pre-revenue, generating only A$0.07 million primarily from its HPA First Project. Despite forecasts suggesting substantial revenue growth of over 140% annually, the company remains unprofitable and is not expected to achieve profitability in the near term. Financially, Alpha HPA has more cash than debt and its short-term assets exceed both short-term and long-term liabilities; however, it faces less than a year of cash runway if historical free cash flow reductions persist. The management team lacks experience with an average tenure of 0.4 years.

ASX:A4N Debt to Equity History and Analysis as at Jul 2025 ASX:A4N Debt to Equity History and Analysis as at Jul 2025

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

Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally, with a market cap of A$139.15 million.

Operations: The company generates revenue from online retail sales amounting to A$781.98 million.

Story Continues

Market Cap: A$139.15M

Cettire Limited, with a market cap of A$139.15 million, operates debt-free and has short-term assets exceeding liabilities. Despite stable weekly volatility over the past year, its share price remains highly volatile compared to most Australian stocks. Earnings growth has been negative recently, contrasting with significant profit growth over the past five years. The company’s net profit margins have declined from 3.6% to 0.3%, impacted by a large one-off gain of A$1.3 million in recent financial results. Recent board changes include Timothy Hume’s appointment as Company Secretary following Fiona van Wyk’s retirement after her tenure since Cettire’s IPO in 2020.

ASX:CTT Revenue & Expenses Breakdown as at Jul 2025 ASX:CTT Revenue & Expenses Breakdown as at Jul 2025

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

Overview: MotorCycle Holdings Limited operates motorcycle dealerships across Australia and has a market capitalization of A$247.25 million.

Operations: The company generates revenue through two main segments: Motorcycle Retailing, which accounts for A$446.85 million, and Motorcycle and Accessories Wholesaling, contributing A$180.54 million.

Market Cap: A$247.25M

MotorCycle Holdings Limited, with a market cap of A$247.25 million, shows a mixed financial profile. Its revenue streams from Motorcycle Retailing and Wholesaling are substantial, yet recent negative earnings growth and declining net profit margins suggest challenges. The company’s return on equity is low at 8.3%, but it maintains strong liquidity with short-term assets exceeding liabilities and satisfactory debt levels supported by operating cash flow. Despite trading below fair value estimates and having high-quality past earnings, the management team’s inexperience may impact strategic direction amidst ongoing business reorganizations and M&A activities involving Peter Stevens Motorcycles Pty Ltd and Harley Heaven Pty Ltd.

ASX:MTO Debt to Equity History and Analysis as at Jul 2025 ASX:MTO Debt to Equity History and Analysis as at Jul 2025

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.

Companies discussed in this article include ASX:A4N ASX:CTT and ASX:MTO.

This article was originally published by Simply Wall St.

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