3 Canadian Penny Stocks On TSX With Under CA$200M Market Cap

The Canadian stock market is currently experiencing strong momentum, with stocks on track to finish the year robustly, supported by resilient consumer spending and rising corporate profits. Amid this optimistic backdrop, penny stocks—often representing smaller or newer companies—continue to hold appeal for investors seeking affordability and growth potential. Despite their vintage name, these stocks can offer surprising value when backed by solid financial foundations.

Click here to see the full list of 959 stocks from our TSX Penny Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

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

Overview: E3 Lithium Limited focuses on developing and extracting lithium resources in Alberta, with a market cap of CA$88.82 million.

Operations: E3 Lithium Limited does not have any reported revenue segments.

Market Cap: CA$88.82M

E3 Lithium Limited, with a market cap of CA$88.82 million, is pre-revenue and currently unprofitable. The company has no debt and sufficient cash runway for over a year based on current free cash flow trends. Recent developments include the advancement of its Demonstration Facility in Alberta, supported by CA$5 million from Emissions Reduction Alberta, aiming to produce battery-grade lithium carbonate by mid-2025. Despite stable weekly volatility and experienced management, E3 faces challenges in achieving profitability soon but remains focused on leveraging its Direct Lithium Extraction technology for future growth prospects in the lithium sector.

• Navigate through the intricacies of E3 Lithium with our comprehensive balance sheet health report here.

• Assess E3 Lithium’s future earnings estimates with our detailed growth reports.

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

Overview: NEO Battery Materials Ltd. specializes in producing silicon anode materials for lithium-ion batteries used in electric vehicles, electronics, and energy storage systems in Canada, with a market cap of CA$100.18 million.