ASX Penny Stocks To Watch In February 2026

As Australian shares prepare for a modest open amid the bustling February reporting season, investors are keenly observing market dynamics without the usual guidance from U.S. and Chinese traders due to their respective holidays. In this context, penny stocks—often representing smaller or newer companies—continue to capture attention as they offer unique opportunities for growth and value. Despite being considered an outdated term by some, these stocks remain relevant investment options, especially when backed by strong financials and promising potential.

Name	Share Price	Market Cap	Financial Health Rating
Alfabs Australia (ASX:AAL)	A$0.47	A$134.7M	★★★★★☆
IVE Group (ASX:IGL)	A$3.10	A$477.83M	★★★★★☆
MotorCycle Holdings (ASX:MTO)	A$2.92	A$215.68M	★★★★★★
Pureprofile (ASX:PPL)	A$0.042	A$49.13M	★★★★★★
Veris (ASX:VRS)	A$0.0675	A$36.48M	★★★★★★
West African Resources (ASX:WAF)	A$3.67	A$4.19B	★★★★★★
Praemium (ASX:PPS)	A$0.67	A$326.61M	★★★★★★
Australian Ethical Investment (ASX:AEF)	A$4.31	A$488.84M	★★★★★★
MaxiPARTS (ASX:MXI)	A$2.17	A$120.53M	★★★★★★
Hansen Technologies (ASX:HSN)	A$4.49	A$916.98M	★★★★★★

Click here to see the full list of 414 stocks from our ASX Penny Stocks screener.

Let’s review some notable picks from our screened stocks.

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

Overview: Coast Entertainment Holdings Limited invests in, owns, and operates leisure and entertainment businesses in Australia with a market cap of A$217.59 million.

Operations: Coast Entertainment Holdings Limited has not reported any specific revenue segments.

Market Cap: A$217.59M

Coast Entertainment Holdings Limited, with a market cap of A$217.59 million, has shown resilience by reducing its losses at a significant rate over the past five years and maintaining a debt-free status. The company recently reported half-yearly revenue of A$62.84 million, marking growth from the previous year. Its short-term assets surpass both short- and long-term liabilities, ensuring financial stability in the near term. Trading at 59.4% below estimated fair value suggests potential investment appeal for those interested in penny stocks, although it remains unprofitable despite stable weekly volatility and an experienced management team averaging 3.5 years tenure.

ASX:CEH Debt to Equity History and Analysis as at Feb 2026

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

Overview: Calix Limited is an environmental technology company that offers industrial solutions for global decarbonisation and sustainability challenges across various regions, with a market cap of A$357.86 million.

Operations: The company’s revenue is derived from three segments: LEILAC (A$3.84 million), Suspro (A$0.01 million), and Magnesia (A$24.32 million).

Market Cap: A$357.86M

Calix Limited, with a market cap of A$357.86 million, focuses on environmental technology solutions but remains unprofitable and faces challenges with a cash runway of less than a year if free cash flow continues to decline. Despite having more cash than debt and reducing its debt-to-equity ratio from 0.9% to 0.2% over five years, the company has seen increasing losses at an annual rate of 25.1%. While revenue is expected to grow by 25.08% annually, high share price volatility and an inexperienced board present additional risks for investors considering penny stocks in Australia.

ASX:CXL Financial Position Analysis as at Feb 2026

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

Overview: Venus Metals Corporation Limited is involved in the exploration of mineral tenements in Western Australia and has a market cap of A$51.37 million.

Operations: The company’s revenue is derived from the exploration of minerals, amounting to A$0.31 million.

Market Cap: A$51.37M

Venus Metals Corporation Limited, with a market cap of A$51.37 million, is pre-revenue and recently turned profitable, reporting net income of A$9.2 million for the half-year ending December 2025. The company has no debt and its short-term assets significantly exceed liabilities, indicating strong financial stability despite limited revenue generation from mineral exploration activities in Western Australia. Recent developments include the identification of new unexplored areas at its Sandstone Bellchambers Gold Project using advanced imaging techniques. Although a takeover bid by QGold Pty Ltd was rejected by Venus’s board, it highlights external interest in the company’s potential growth prospects within the sector.

ASX:VMC Financial Position 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 ASX:CEH ASX:CXL and ASX:VMC.

This article was originally published by Simply Wall St.

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