Shareholders Are Raving About How The WhiteHawk (ASX:WHK) Share Price Increased 381%

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you buy and hold the right company, the returns can make a huge difference to both you and your family. In the case of WhiteHawk Limited (ASX:WHK), the share price is up an incredible 381% in the last year alone. On top of that, the share price is up 88% in about a quarter. Looking back further, the stock price is 56% higher than it was three years ago.

Check out our latest analysis for WhiteHawk

Given that WhiteHawk 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last twelve months, WhiteHawk's revenue grew by 140%. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 381% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on WhiteHawk's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, WhiteHawk's total shareholder return last year was 381%. That gain actually surpasses the 17% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand WhiteHawk better, we need to consider many other factors. For instance, we've identified 5 warning signs for WhiteHawk (1 is a bit concerning) that you should be aware of.

Of course WhiteHawk may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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This article by Simply Wall St is general in nature. 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.
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