The Canadian market has shown signs of stabilization, with a declining unemployment rate and easing inflation, despite ongoing uncertainties surrounding trade agreements. In such a landscape, investors often look for opportunities in smaller companies that might offer growth potential not always found in larger firms. Penny stocks, while an older term, continue to represent these smaller or newer companies that can provide significant value when backed by strong financials and clear growth prospects.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Greenlane Renewables Inc. offers biogas desulfurization and upgrading systems and services globally, with a market cap of CA$36.70 million.
Operations: The company generates revenue from its Machinery & Industrial Equipment segment, totaling CA$42.15 million.
Market Cap: CA$36.7M
Greenlane Renewables Inc. has shown financial improvement, becoming profitable over the past year with no debt and strong asset management, as its short-term assets (CA$33.9 million) comfortably cover both its short-term and long-term liabilities. The company trades significantly below estimated fair value, suggesting potential undervaluation in the market. Recent executive changes include promoting Dale Goudie to Chief Technology Officer, leveraging his extensive experience to advance Greenlane’s technological capabilities in biogas upgrading systems. However, despite these positives, insider selling over the past quarter raises caution about internal confidence levels in future performance prospects.
TSX:GRN Financial Position Analysis as at Feb 2026
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Argentina Lithium & Energy Corp. is a junior mineral exploration company focused on acquiring, exploring, and evaluating natural resource properties in the Americas and Argentina, with a market cap of CA$21.32 million.
Operations: Argentina Lithium & Energy Corp. currently does not report any revenue segments.
Market Cap: CA$21.32M
Argentina Lithium & Energy Corp., with a market cap of CA$21.32 million, is pre-revenue and has focused on strategic partnerships to advance its Rincon West Lithium Brine Project. A recent Memorandum of Understanding with Xi’an Lanshen New Material Technology Co. Ltd. aims to deploy advanced Direct Lithium Extraction technology, potentially accelerating project development toward feasibility studies and commercial production. Despite high volatility and continued unprofitability, the company has improved its financial position by achieving positive shareholder equity and maintaining a satisfactory net debt-to-equity ratio. A recent private placement seeks to raise up to CA$4.3 million for further development initiatives.
TSXV:LIT Debt to Equity History and Analysis as at Feb 2026
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Neptune Digital Assets Corp. builds, owns, and operates infrastructure supporting the digital currency ecosystem in Canada and the United States, with a market cap of CA$107.76 million.
Operations: The company’s revenue is primarily derived from its data processing segment, which generated CA$1.72 million.
Market Cap: CA$107.76M
Neptune Digital Assets, with a market cap of CA$107.76 million, operates within the digital currency ecosystem but remains unprofitable. The company has reduced losses over the past five years and maintains a satisfactory net debt-to-equity ratio of 3.6%. Despite having sufficient cash runway for over three years, its short-term assets (CA$10.5M) do not cover short-term liabilities (CA$12.6M). Recent earnings showed a decline in revenue to CA$0.39 million for Q1 2026, with a net loss of CA$3.71 million compared to last year’s profit, highlighting ongoing financial challenges amid high share price volatility and recent exclusion from the S&P/TSX Venture Composite Index.
TSXV:NDA Debt to Equity History and Analysis as at Feb 2026
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 TSX:GRN TSXV:LIT and TSXV:NDA.
This article was originally published by Simply Wall St.
