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Operations: The company's revenue is primarily generated from its vaping segment (£77.29 million), followed by branded household consumer goods (£67.25 million), batteries (£42.00 million), sports nutrition and wellness (£18.52 million), and lighting (£17.13 million).

Market Cap: £187.7M

Supreme Plc, with a market cap of £187.70 million, presents a mixed picture in the penny stock landscape. The company has demonstrated strong earnings growth of 32.7% over the past year, surpassing industry averages and reflecting high-quality earnings with an impressive return on equity of 36.5%. Its financial health is robust, with short-term assets (£70.1M) covering both short-term (£38.2M) and long-term liabilities (£14.2M), and it remains debt-free after reducing significant past debt levels. However, an inexperienced management team and forecasted earnings decline by 9% annually over the next three years may temper investor enthusiasm despite trading slightly below estimated fair value.

• Take a closer look at Supreme's potential here in our financial health report.

• Understand Supreme's earnings outlook by examining our growth report.

Cairn Homes

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

Overview: Cairn Homes plc is involved in the development of residential properties for sale in Ireland, with a market capitalization of £992.40 million.

Operations: The company generates revenue primarily through its building and property development activities, amounting to €859.87 million.

Market Cap: £992.4M

Cairn Homes, with a market capitalization of £992.40 million, stands out in the penny stock arena due to its robust financial performance and strategic positioning. The company reported significant earnings growth of 34.1% over the past year, outperforming industry averages and achieving high-quality earnings with improved net profit margins at 13.3%. Its short-term assets (€1 billion) comfortably cover both short-term (€138.7 million) and long-term liabilities (€175.3 million), while debt is well-managed with operating cash flow covering 74% of it. Despite a stable dividend history, insider selling could be a concern for potential investors seeking stability in this sector.

• Click here and access our complete financial health analysis report to understand the dynamics of Cairn Homes.

• Gain insights into Cairn Homes' outlook and expected performance with our report on the company's earnings estimates.

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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 AIM:POLR AIM:SUP and LSE:CRN.

This article was originally published by Simply Wall St.

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