Investing in Hostelworld Group (LON:HSW) three years ago would have delivered you a 131% gain

The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Hostelworld Group plc (LON:HSW) share price has flown 131% in the last three years. How nice for those who held the stock!

With that in mind, it’s worth seeing if the company’s underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

Check out our latest analysis for Hostelworld Group

Given that Hostelworld Group didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years Hostelworld Group has grown its revenue at 48% annually. That’s well above most pre-profit…