ASX Penny Stocks With Market Caps Over A$700M To Consider

As Australian shares head for a potential record-breaking week, the local market is abuzz with activity, driven by a flurry of quarterly reports from major companies. For investors willing to explore beyond the well-known names, penny stocks—often representing smaller or newer companies—remain an intriguing area of investment. Despite the term’s somewhat outdated feel, these stocks can offer surprising value and stability when backed by strong financial health.

Click here to see the full list of 417 stocks from our ASX Penny Stocks screener.

We’re going to check out a few of the best picks from our screener tool.

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

Overview: Chalice Mining Limited is a mineral exploration and evaluation company with a market cap of A$714.73 million.

Operations: Chalice Mining Limited does not report any specific revenue segments.

Market Cap: A$714.73M

Chalice Mining, with a market cap of A$714.73 million, is pre-revenue and remains unprofitable. Despite this, the company has no debt and maintains a strong cash position with short-term assets of A$81.2 million exceeding both its short-term and long-term liabilities. The management team is relatively new, which may impact strategic direction; however, the board’s experience offers stability. Recent insider selling could be concerning for investors looking for confidence in internal sentiment. Chalice Mining recently addressed compliance issues within its audit committee to align with ASX guidelines, demonstrating a commitment to corporate governance improvements.

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

Overview: Peet Limited acquires, develops, and markets residential land in Australia with a market cap of A$901.21 million.

Operations: The company’s revenue is primarily derived from Company Owned Projects (A$313.24 million), Funds Management (A$56.39 million), and Joint Arrangements (A$51.88 million).

Market Cap: A$901.21M

Peet Limited, with a market cap of A$901.21 million, has shown impressive earnings growth of 60% over the past year, outpacing both its historical average and the broader real estate industry. While the company benefits from high-quality earnings and well-covered interest payments (10.7x EBIT coverage), it faces challenges with a high net debt to equity ratio of 45.8% and short-term assets not covering long-term liabilities. The board’s inexperience may affect strategic decisions, though shareholders have not faced significant dilution recently. Peet trades at 84% below estimated fair value, suggesting potential undervaluation despite an unstable dividend history.

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

Overview: Web Travel Group Limited offers online travel booking services across Australia, the United Arab Emirates, the United Kingdom, and internationally, with a market cap of A$1.26 billion.

Operations: The company generates revenue primarily through its Business to Business Travel (B2B) segment, which reported A$362.6 million.

Market Cap: A$1.26B

Web Travel Group, with a market cap of A$1.26 billion, has seen its earnings impacted by a one-off loss of A$51.2 million over the past year. Despite this, the company remains financially robust with more cash than debt and short-term assets exceeding long-term liabilities. However, short-term liabilities still surpass its available assets. Earnings growth is forecasted at 39.46% annually despite recent negative growth of -99.4%. The stock trades significantly below fair value estimates and analysts expect price appreciation by 72.7%. Recent insider selling may raise concerns while management changes could affect future stability and performance.

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:PPC and ASX:WEB.

This article was originally published by Simply Wall St.

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