Discover 3 TSX Penny Stocks To Watch In December 2024

As the Canadian market continues to show resilience, investors are turning their attention to smaller or newer companies with solid financial foundations and growth potential. Penny stocks, despite their older term, remain relevant for those seeking opportunities in today's evolving economic landscape. This article highlights three TSX penny stocks to watch in December 2024, based on their financial health ratings and market capitalizations.

1. Greenlane Renewables (TSX:GRN)
Greenlane Renewables is a biogas upgrading systems provider with a market cap of CA$15.45 million. The company generates revenue primarily from its Machinery & Industrial Equipment segment, amounting to CA$63.03 million. Greenlane Renewables has been active in advancing its renewable natural gas (RNG) technology, recently filing two patent applications aimed at improving landfill gas upgrading systems. Despite being unprofitable with a negative return on equity, Greenlane maintains a strong cash runway and no debt, supported by growing revenues. Recent executive changes include appointing Stephanie Mason as CFO to further strategic goals in the RNG sector.



2. Findev (TSXV:FDI)
Findev Inc. is a real estate finance company with a market cap of CA$12.32 million. The company offers financing secured by investment properties and real estate developments in the Greater Toronto Area, Canada. Findev is debt-free and has shown significant earnings growth of 56% over the past year, surpassing industry averages. Despite its low return on equity of 8.8%, the company maintains high-quality earnings and a strong net profit margin at 61.7%. Recent financial results highlight improved profitability, with third-quarter net income rising to CA$0.63 million from CA$0.42 million year-over-year. However, its dividend yield of 6.45% is not well covered by free cash flows, suggesting potential sustainability concerns despite consecutive dividend declarations through early 2025.



3. Jaguar Mining (TSX:JAG)
Jaguar Mining Inc. is a junior gold mining company focused on the acquisition, exploration, development, and operation of gold mineral properties in Brazil. With a market cap of CA$299.78 million, Jaguar presents a compelling case within the penny stock segment due to its low Price-To-Earnings ratio of 7.3x, compared to the Canadian market average of 14.8x, suggesting potential undervaluation. The company has shown robust earnings growth of 75.7% over the past year, surpassing both its historical performance and industry averages, while maintaining high-quality earnings and improved profit margins at 19.3%. Jaguar's financial stability is underscored by short-term assets exceeding liabilities and a debt level well-covered by operating cash flow (1676.5%). Recent initiatives include a share repurchase program aimed at enhancing shareholder value amidst stable production levels and strategic focus on high-grade zones in Brazil's Pilar mine.

In conclusion, Greenlane Renewables, Findev, and Jaguar Mining are three TSX penny stocks to watch in December 2024. Each company exhibits strong financial health ratings and market capitalizations, making them attractive investment opportunities in today's market. However, investors should carefully evaluate their individual financial health and market potential before making any investment decisions.