ASX Penny Stocks: Baby Bunting Group Among 3 Noteworthy Picks

Baby Bunting Group, a retailer of maternity and baby goods, has a market capitalization of A$242.86 million. Despite a seasoned management team and stable weekly volatility, profit margins have declined to 1.2% from 2.4% last year, and earnings growth remains negative at -50%. The company's debt is well-covered by operating cash flow (177.9%), but interest payments are not adequately covered by EBIT (2.2x). Trading significantly below estimated fair value, Baby Bunting faces challenges with long-term liabilities exceeding short-term assets.