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It is a physical change, because it does not change in substance. A penny, whether in its normal state or flattened, is still a penny. Similarly, if you drop a watermelon and it breaks apart, that is also considered to be a physical change because it is still a watermelon.

Things are considered to be chemical changes when the substance changes into something new, and is commonly classified as irreversible. When an object rusts, it is considered to be a chemical change. Chemical changes are associated with a temperature change, or a color change or bubbling or something of the sort. Physical changes deal with physical changes in state, for example, ice melting, or in the example you provided, a penny being flattened.

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Q: Why penny flattened by a hammer is a physical change?
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