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As the Canadian market navigates a period of economic adjustment, with inflation rising to 2.6% in February due to tax changes, investors are keeping a close watch on interest rate policies and their implications for growth. Penny stocks, often associated with smaller or newer companies, remain an intriguing investment area despite being considered somewhat niche today. With strong financials as a key criterion, these stocks can offer unique opportunities for those looking beyond larger firms for potential growth and value.
Top 10 Penny Stocks In Canada
| Name | Share Price | Market Cap | Financial Health Rating |
| Haivision Systems (TSX:HAI) | CA$4.32 | CA$119.63M | ★★★★★☆ |
| NTG Clarity Networks (TSXV:NCI) | CA$1.88 | CA$75.88M | ★★★★★☆ |
| NamSys (TSXV:CTZ) | CA$1.12 | CA$30.09M | ★★★★★★ |
| Madoro Metals (TSXV:MDM) | CA$0.045 | CA$4.03M | ★★★★★★ |
| Orezone Gold (TSX:ORE) | CA$0.95 | CA$453.73M | ★★★★★☆ |
| Amerigo Resources (TSX:ARG) | CA$2.00 | CA$321.14M | ★★★★★☆ |
| PetroTal (TSX:TAL) | CA$0.70 | CA$632.47M | ★★★★★☆ |
| McCoy Global (TSX:MCB) | CA$3.23 | CA$93.77M | ★★★★★★ |
| Findev (TSXV:FDI) | CA$0.50 | CA$14.32M | ★★★★★★ |
| BluMetric Environmental (TSXV:BLM) | CA$1.20 | CA$43.2M | ★★★★★★ |
Click here to see the full list of 937 stocks from our TSX Penny Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Roots
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Roots Corporation, along with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally with a market cap of CA$96.60 million.
Operations: The company generates revenue through its Direct-To-Consumer segment, which accounts for CA$219.79 million, and its Partners and Other segment, contributing CA$40.56 million.
Market Cap: CA$96.6M
Roots Corporation, with a market cap of CA$96.60 million, is experiencing significant earnings growth, notably 918.7% over the past year, surpassing industry averages. However, its Return on Equity remains low at 1.6%, and interest payments are not well covered by EBIT. Debt management appears strong as operating cash flow covers debt well and net debt to equity is satisfactory at 26.1%. Despite a large one-off loss impacting recent results, Roots has improved its profit margins to 1.1% from last year's 0.1%. The board's seasoned experience adds stability amidst these financial dynamics.
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Dive into the specifics of Roots here with our thorough balance sheet health report.
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Gain insights into Roots' future direction by reviewing our growth report.
Voyageur Pharmaceuticals
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Voyageur Pharmaceuticals Ltd. is involved in acquiring, exploring, and developing raw materials for pharmaceutical products in British Columbia, Canada, and Utah, with a market cap of CA$27.39 million.