COSOL And 2 ASX Penny Stocks To Watch In Your Portfolio

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

Overview: The Environmental Group Limited specializes in designing, applying, and servicing emission control systems and gas turbine inlet and exhaust systems globally, with a market cap of A$117.95 million.

Operations: The company’s revenue is derived from several segments, including EGL Waste (A$0.85 million), EGL Energy (A$37.86 million), Egl Clean Air Tapc (A$17.40 million), Egl Clean Air Airtight (A$15.54 million), and EGL Turbine Enhancement (A$27.13 million).

Market Cap: A$117.95M

Environmental Group Limited, with a market cap of A$117.95 million, showcases robust financials and growth potential in the penny stock segment. Its earnings have grown significantly by 68% over the past year, outpacing its five-year average growth rate of 46%. The company maintains strong liquidity with short-term assets exceeding liabilities and has reduced its debt to equity ratio from 12.5% to 0.4% over five years. Despite having a relatively new board of directors, EGL’s management team is experienced, contributing to high-quality earnings and effective debt coverage by operating cash flow at a very large multiple.

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

Overview: Vmoto Limited, with a market cap of A$30.71 million, develops, manufactures, markets, and distributes electric two-wheel vehicles globally.

Operations: The company generates revenue of A$50.64 million from the manufacture and distribution of electric two-wheel vehicles.

Market Cap: A$30.71M

Vmoto Limited, with a market cap of A$30.71 million, is navigating challenges typical of penny stocks. The company remains unprofitable but has managed to reduce losses at a rate of 20.2% annually over five years. Despite shareholder dilution and high share price volatility, Vmoto’s financial position is bolstered by short-term assets exceeding both short and long-term liabilities significantly. The recent announcement of a buyback program indicates strategic moves as the company prepares for delisting, offering shareholders an exit strategy while maintaining more cash than its total debt, highlighting prudent financial management amidst ongoing operational hurdles.

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:COS ASX:EGL and ASX:VMT.

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