ASX Penny Stocks To Watch In January 2026

Overview:HMC Capital Limited, along with its subsidiaries, owns and manages real estate-focused funds in Australia and has a market capitalization of A$1.66 billion.

Operations:HMC Capital generates revenue through its distinct segments: Digital (A$84.1 million), Real Estate (A$79.8 million), Private Credit (A$42 million), and Private Equity (A$28.3 million).

Market Cap:A$1.66B

HMC Capital, with a market capitalization of A$1.66 billion, has experienced substantial earnings growth of 123.2% over the past year, surpassing industry averages. Despite this growth, its dividend yield of 2.98% is not well covered by free cash flows, and a significant one-off loss of A$70.4 million impacted recent financial results. The company has reduced its debt to equity ratio from 50% to 6.9% over five years and maintains more cash than total debt, indicating strong financial management. However, HMC was recently dropped from the S&P/ASX 200 Index as of December 2025.

• Dive into the specifics of HMC Capital here with our thorough balance sheet health report.

• Evaluate HMC Capital's prospects by accessing our earnings growth report.

Michael Hill International

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

Overview:Michael Hill International Limited is a retailer specializing in the sale of jewellery and related services across Australia, New Zealand, and Canada, with a market cap of A$146.24 million.

Operations:The company generates revenue primarily from its jewellery and related services operations, amounting to A$645.31 million.

Market Cap:A$146.24M

Michael Hill International, with a market cap of A$146.24 million, has recently transitioned to profitability, complicating comparisons with its historical earnings growth. The company's short-term assets of A$238.1 million comfortably cover both short and long-term liabilities, though interest coverage remains below ideal levels at 2.7 times EBIT. Despite stable weekly volatility and satisfactory net debt to equity ratio (24.5%), the firm faces challenges such as a large one-off loss impacting recent results and low return on equity at 1.2%. Upcoming CFO Elodie Guillaumond's extensive experience may enhance financial strategy execution starting February 2026.

• Take a closer look at Michael Hill International's potential here in our financial health report.

• Explore Michael Hill International's analyst forecasts in our growth report.

Taking Advantage

• Click this link to deep-dive into the 417 companies within our ASX Penny Stocks screener.

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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:AFA ASX:HMC and ASX:MHJ.

This article was originally published by Simply Wall St .

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