ASX Penny Stocks Spotlight Aurelia Metals And Two Others
.March 9, 2025
The Australian market has been experiencing turbulence, with the ASX 200 futures indicating a further downturn and concerns over stalled household spending. Despite these challenges, opportunities can still be found in certain investment areas, such as penny stocks. While the term “penny stocks” may seem outdated, it remains relevant for identifying smaller or newer companies that could offer potential growth when backed by strong financial health.
Underneath we present a selection of stocks filtered out by our screen.
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Aurelia Metals Limited is an Australian company focused on the exploration and production of mineral properties, with a market cap of A$363.69 million.
Operations: The company’s revenue is derived from its operations at the Peak Mine (A$245.13 million), Dargues Mine (A$73.90 million), and Hera Mine (A$5.98 million).
Market Cap: A$363.69M
Aurelia Metals has shown a turnaround by becoming profitable in the past year, with net income of A$17.95 million for the half year ended December 31, 2024, compared to a net loss previously. The company’s short-term assets significantly exceed both its short and long-term liabilities, indicating strong financial health. Despite having more cash than total debt and operating cash flow covering debt well over expectations, the board and management are relatively inexperienced with average tenures under three years. While trading below estimated fair value, interest coverage remains slightly below optimal levels at 2.6 times EBIT.
ASX:AMI Revenue & Expenses Breakdown as at Mar 2025
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Fleetwood Limited, with a market cap of A$222.78 million, operates in Australia and New Zealand by designing, manufacturing, selling, and installing modular accommodation and buildings.
Operations: The company’s revenue is derived from three main segments: Building Solutions (A$340.12 million), RV Solutions (A$71.51 million), and Community Solutions (A$50.02 million).
Market Cap: A$222.78M
Fleetwood Limited, with a market cap of A$222.78 million, has demonstrated mixed performance as a penny stock. The company’s recent half-year earnings showed an increase in sales to A$271.94 million and net income of A$4.66 million, indicating some growth despite lower profit margins than the previous year. Fleetwood’s dividend yield of 9.62% is not well covered by earnings, raising sustainability concerns despite the recent dividend increase announcement. The company remains debt-free with short-term assets exceeding liabilities, yet its return on equity is low at 2.7%. Earnings are forecast to grow significantly at 37.41% annually according to consensus estimates.
ASX:FWD Financial Position Analysis as at Mar 2025
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Kingsgate Consolidated Limited is involved in the exploration, development, and mining of gold and silver mineral properties, with a market capitalization of A$353.12 million.
Operations: Kingsgate Consolidated Limited generates revenue primarily from its Chatree segment, amounting to A$210.69 million.
Market Cap: A$353.12M
Kingsgate Consolidated Limited, with a market cap of A$353.12 million, has shown significant earnings growth of 1203% over the past year, driven by its Chatree segment revenue of A$210.69 million. The company’s short-term assets cover its liabilities and it maintains a satisfactory net debt to equity ratio of 17.9%. Despite recent executive changes with the departure of CFO Dan O’Connell, Kingsgate’s financial leadership remains stable during this transition period. Trading at good value compared to peers and industry, Kingsgate’s return on equity is outstanding at 74.4%, though earnings are forecast to decline by an average of 14.3% annually over the next three years according to consensus estimates.
ASX:KCN Financial Position Analysis as at Mar 2025
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:AMI ASX:FWD and ASX:KCN.
