The Canadian market has shown resilience, with the TSX rising over 2% recently, even as global markets grapple with tariff uncertainties and economic pressures. In such a climate, investors often look beyond the larger indices to find opportunities in lesser-known areas like penny stocks. Although the term "penny stocks" might seem outdated, these smaller or newer companies can offer significant potential for growth when backed by strong financials and sound fundamentals.

Top 10 Penny Stocks In Canada

Click here to see the full list of 930 stocks from our TSX Penny Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Calfrac Well Services

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

Overview: Calfrac Well Services Ltd., along with its subsidiaries, offers specialized oilfield services in Canada, the United States, and Argentina, and has a market cap of CA$292.88 million.

Operations: The company generates its revenue primarily from oil well equipment and services, amounting to CA$1.57 billion.

Market Cap: CA$292.88M

Calfrac Well Services, with a market cap of CA$292.88 million, recently reported a net loss for Q4 2024 amid declining sales. The company has seen significant debt reduction over the past five years, yet its current net debt to equity ratio remains high at 42.4%. While short-term and long-term liabilities are covered by assets, interest payments are not well covered by earnings. Recent executive changes could impact future strategy and operations. Despite negative earnings growth last year, Calfrac is forecasted to grow profits modestly at 4.61% annually moving forward in the competitive energy services sector.

• Click here to discover the nuances of Calfrac Well Services with our detailed analytical financial health report.
• Review our growth performance report to gain insights into Calfrac Well Services' future.

Eupraxia Pharmaceuticals

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

Overview: Eupraxia Pharmaceuticals Inc. is a clinical stage biotechnology company focused on discovering, developing, and marketing technologies in the biotechnology sector, with a market cap of CA$159.17 million.

Operations: Eupraxia Pharmaceuticals Inc. has not reported any specific revenue segments.

Market Cap: CA$159.17M

Eupraxia Pharmaceuticals Inc., with a market cap of CA$159.17 million, remains pre-revenue as it focuses on clinical trials for innovative treatments like EP-104GI and EP-104IAR. Despite its unprofitable status, the company reported a reduced net loss of US$25.5 million for 2024 compared to the previous year. Eupraxia is debt-free, with short-term assets significantly exceeding liabilities and a cash runway extending over a year. Recent executive changes include appointing Alex Rothwell as CFO, potentially enhancing financial strategy given his extensive capital markets experience. The management team has an average tenure of 2.4 years, indicating moderate experience levels amidst ongoing development efforts.

• Get an in-depth perspective on Eupraxia Pharmaceuticals' performance by reading our balance sheet health report here.
• Assess Eupraxia Pharmaceuticals' future earnings estimates with our detailed growth reports.

Amex Exploration

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

Overview: Amex Exploration Inc., along with its subsidiaries, focuses on exploring gold mining properties in Canada and has a market capitalization of CA$108.82 million.

Operations: Amex Exploration Inc. does not report any specific revenue segments, as it is primarily focused on the exploration of gold mining properties in Canada.

Market Cap: CA$108.82M

Amex Exploration Inc., with a market cap of CA$108.82 million, is pre-revenue, focusing on gold exploration. The company has achieved profitability recently, though its Return on Equity remains low at 1.1%. Amex's strategic expansion includes acquiring the Perron West Project, significantly increasing its land holdings and exploration potential in Quebec and Ontario. Recent drill results from the Perron Project indicate promising mineralization extensions in the Central Polymetallic Zone. Despite short-term assets exceeding liabilities, long-term liabilities are not fully covered by current assets. With no debt and a seasoned management team, Amex continues to pursue aggressive exploration strategies to enhance resource potential.

• Dive into the specifics of Amex Exploration here with our thorough balance sheet health report.
• Evaluate Amex Exploration's prospects by accessing our earnings growth report.

Seize The Opportunity

• Access the full spectrum of 930 TSX Penny Stocks by clicking on this link.
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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:CFW TSX:EPRX and TSXV:AMX.

This article was originally published by Simply Wall St.

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