In the last week, the Australian market has stayed flat, but it is up 6.9% over the past year with earnings forecast to grow by 11% annually. Investing in penny stocks—once a niche area—can still present growth opportunities, especially when these stocks are supported by strong financial health and long-term potential. We’ll explore several penny stocks that stand out for their financial strength, making them promising candidates for investors seeking under-the-radar companies poised for success.
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Name
Share Price
Market Cap
Financial Health Rating
Alfabs Australia (ASX:AAL)
A$0.485
A$139M
★★★★★☆
Dusk Group (ASX:DSK)
A$0.80
A$49.81M
★★★★★★
IVE Group (ASX:IGL)
A$2.70
A$416.44M
★★★★★☆
MotorCycle Holdings (ASX:MTO)
A$3.30
A$243.56M
★★★★★★
Pureprofile (ASX:PPL)
A$0.043
A$50.3M
★★★★★★
Veris (ASX:VRS)
A$0.072
A$37.28M
★★★★★★
SHAPE Australia (ASX:SHA)
A$4.86
A$400.2M
★★★★★★
West African Resources (ASX:WAF)
A$3.04
A$3.47B
★★★★★★
Praemium (ASX:PPS)
A$0.75
A$358.29M
★★★★★★
Service Stream (ASX:SSM)
A$2.33
A$1.43B
★★★★★★
Click here to see the full list of 423 stocks from our ASX Penny Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Chalice Mining Limited is a mineral exploration and evaluation company with a market cap of A$929.96 million.
Operations: Chalice Mining Limited currently does not report any revenue segments.
Market Cap: A$929.96M
Chalice Mining Limited, with a market cap of A$929.96 million, is a pre-revenue company in the mining sector. Despite its unprofitability and increasing losses over the past five years, the company has no debt and sufficient cash runway for over three years based on current free cash flow trends. The management team is relatively new with an average tenure of 1.5 years, while the board is more seasoned at 4.5 years. Recent earnings results show a reduced net loss of A$24.21 million for the year ended June 2025, indicating some improvement from previous periods.
ASX:CHN Financial Position Analysis as at Sep 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Macmahon Holdings Limited offers surface and underground mining, mining support, and civil infrastructure services to mining companies in Australia and Southeast Asia, with a market cap of A$885.31 million.
Operations: The company’s revenue is derived from two main segments: Mining, which generates A$1.97 billion, and Civil, contributing A$436.97 million.
Story Continues
Market Cap: A$885.31M
Macmahon Holdings, with a market cap of A$885.31 million, has demonstrated strong revenue growth, reporting A$2.43 billion for the year ended June 2025. Earnings have grown significantly by 38.9% over the past year, surpassing industry averages and reversing a five-year decline trend. The company maintains satisfactory debt levels with net debt to equity at 5.7%, and its interest payments are well covered by EBIT at 4.4 times coverage. Despite recent board changes and a relatively inexperienced board tenure of 1.9 years, Macmahon’s management team is experienced with an average tenure of 3.7 years, contributing to stable operations amidst market volatility.
ASX:MAH Debt to Equity History and Analysis as at Sep 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Sovereign Metals Limited, with a market cap of A$449.62 million, is involved in the exploration and development of mineral resource projects in Malawi through its subsidiaries.
Operations: Currently, there are no reported revenue segments for the company.
Market Cap: A$449.62M
Sovereign Metals Limited, with a market cap of A$449.62 million, remains pre-revenue as it advances its Kasiya Rutile-Graphite Project in Malawi. The company has reported a net loss of A$40.44 million for the year ended June 2025, an increase from the previous year’s loss. Despite these losses, Sovereign is debt-free and maintains sufficient short-term assets to cover liabilities. Recent inclusion in the S&P Global BMI Index highlights investor interest, while successful rehabilitation trials at Kasiya demonstrate potential for enhanced agricultural productivity post-mining, supporting environmental and community engagement goals integral to its Definitive Feasibility Study (DFS).
ASX:SVM Debt to Equity History and Analysis as at Sep 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:CHN ASX:MAH and ASX:SVM.
This article was originally published by Simply Wall St.
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