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3 TSX Penny Stocks Under CA$500M Market Cap

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As the Canadian TSX index experiences modest growth of around 3% this year, investors are paying close attention to stabilizing yields and moderated inflation rates. For those interested in exploring smaller or newer companies, penny stocks—despite their somewhat outdated name—remain a relevant investment area with potential for hidden value. By focusing on financial strength and growth prospects, these stocks can offer opportunities for significant returns amidst current market conditions.

Top 10 Penny Stocks In Canada

Name

Share Price

Market Cap

Financial Health Rating

Mandalay Resources (TSX:MND)

CA$4.83

CA$453.58M

★★★★★★

Alvopetro Energy (TSXV:ALV)

CA$4.83

CA$176.58M

★★★★★★

Findev (TSXV:FDI)

CA$0.52

CA$14.9M

★★★★★★

PetroTal (TSX:TAL)

CA$0.69

CA$632.31M

★★★★★★

NamSys (TSXV:CTZ)

CA$1.20

CA$32.24M

★★★★★★

East West Petroleum (TSXV:EW)

CA$0.045

CA$4.07M

★★★★★★

Foraco International (TSX:FAR)

CA$2.00

CA$197.39M

★★★★★☆

New Gold (TSX:NGD)

CA$4.02

CA$3.18B

★★★★★☆

Orezone Gold (TSX:ORE)

CA$0.90

CA$416.19M

★★★★★☆

Hemisphere Energy (TSXV:HME)

CA$1.90

CA$184.47M

★★★★★☆

Click here to see the full list of 934 stocks from our TSX Penny Stocks screener.

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

DATA Communications Management

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

Overview: DATA Communications Management Corp. offers solutions to streamline complex marketing and communication workflows mainly in the United States and Canada, with a market cap of CA$121.13 million.

Operations: The company generates revenue primarily through its Printing & Publishing segment, which accounts for CA$493.70 million.

Market Cap: CA$121.13M

DATA Communications Management Corp. is navigating its financial challenges with strategic moves, including a newly initiated quarterly dividend program and a special cash dividend of CA$0.20 per share. Despite being unprofitable, the company has improved its financial position over the past five years by transitioning from negative to positive shareholder equity. It trades at a significant discount to estimated fair value and has sufficient cash runway for more than three years due to positive free cash flow growth. However, it faces high net debt levels and long-term liabilities exceeding short-term assets, posing potential risks for investors.

TSX:DCM Debt to Equity History and Analysis as at Feb 2025
TSX:DCM Debt to Equity History and Analysis as at Feb 2025

Mandalay Resources

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

Overview: Mandalay Resources Corporation, along with its subsidiaries, focuses on the acquisition, exploration, extraction, processing, and reclamation of mineral properties across Australia, Sweden, Chile, and Canada with a market capitalization of CA$453.58 million.