The Australian share market is poised for a modest gain today, driven by dovish sentiments around upcoming CPI numbers and a positive rebound in U.S. markets. In this context, penny stocks—often seen as smaller or newer companies—continue to offer intriguing opportunities for investors seeking affordability and growth potential. Despite the term's outdated feel, these stocks can still represent significant value when backed by strong financial health, as we'll see with three standout examples on the ASX.

Top 10 Penny Stocks In Australia

Click here to see the full list of 1,031 stocks from our ASX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Aston Minerals

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

Overview: Aston Minerals Limited is involved in the acquisition, exploration, and evaluation of mineral properties across Canada, Australia, Indonesia, and Europe with a market capitalization of A$15.54 million.

Operations: The company's revenue is derived from its mineral exploration activities, amounting to A$0.16 million.

Market Cap: A$15.54M

Aston Minerals Limited, with a market capitalization of A$15.54 million, is pre-revenue and focuses on mineral exploration across multiple regions. The company maintains a strong financial position with no debt and short-term assets of A$5.3 million exceeding its short-term liabilities of A$196.8K. However, it faces challenges such as high share price volatility and an unprofitable status with increasing losses over the past five years at 20.1% annually. Recent leadership changes include Russell Bradford assuming the role of Chairman while retaining his Managing Director position, following Peter Breese's departure at the end of 2024.

• Dive into the specifics of Aston Minerals here with our thorough balance sheet health report.
• Assess Aston Minerals' previous results with our detailed historical performance reports.

Cettire

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

Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally, with a market cap of A$510.86 million.

Operations: The company generates revenue through online retail sales amounting to A$742.26 million.

Market Cap: A$510.86M

Cettire Limited, with a market cap of A$510.86 million, operates debt-free and maintains strong liquidity as its short-term assets (A$108.9M) surpass both short-term (A$100.7M) and long-term liabilities (A$3.5M). Despite high-quality earnings and a robust return on equity at 29%, the company has faced negative earnings growth of -34.4% over the past year, impacting profit margins which fell to 1.4% from last year's 3.8%. While trading significantly below estimated fair value, Cettire's reduced volatility may appeal to investors seeking stability in the penny stock space amidst forecasted earnings growth of 31.99% annually.

• Click here to discover the nuances of Cettire with our detailed analytical financial health report.
• Gain insights into Cettire's future direction by reviewing our growth report.

Resonance Health

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

Overview: Resonance Health Limited is a healthcare technology and services company that designs, develops, manufactures, and commercializes software-as-medical devices across various regions including Australia, the Asia Pacific, North America, Europe, the Middle East, and Africa with a market cap of A$27.12 million.

Operations: The company's revenue is derived from three segments: CRO generating A$3.84 million, Services contributing A$4.54 million, and Trialswest adding A$0.20 million.

Market Cap: A$27.12M

Resonance Health Limited, with a market cap of A$27.12 million, recently achieved profitability, though its return on equity remains low at 1.5%. The company's financial health is supported by short-term assets (A$9.3M) exceeding both short-term (A$6.1M) and long-term liabilities (A$3.2M), alongside more cash than total debt and well-covered debt by operating cash flow. Despite increased volatility from 14% to 22%, Resonance Health trades significantly below estimated fair value, potentially offering an opportunity for investors mindful of its volatile share price and less experienced management team with an average tenure of 1.4 years.

• Get an in-depth perspective on Resonance Health's performance by reading our balance sheet health report here.
• Understand Resonance Health's track record by examining our performance history report.

Seize The Opportunity

• Navigate through the entire inventory of 1,031 ASX Penny Stocks here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• Find companies with promising cash flow potential yet trading below their fair value.

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:ASO ASX:CTT and ASX:RHT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com