Synchronoss Technologies, Inc. (NASDAQ:SNCR) shareholders will doubtless be very grateful to see the share price up 73% in the last week. But don't envy holders -- looking back over 5 years the returns have been really bad. The share price has failed to impress anyone , down a sizable 58% during that time. So we're hesitant to put much weight behind the short term increase. We'd err towards caution given the long term under-performance.

While the stock has risen 73% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Synchronoss Technologies moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.

It could be that the revenue decline of 17% per year is viewed as evidence that Synchronoss Technologies is shrinking. That could explain the weak share price.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We know that Synchronoss Technologies has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Synchronoss Technologies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Synchronoss Technologies shareholders have received a total shareholder return of 47% over one year. That certainly beats the loss of about 10% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Synchronoss Technologies better, we need to consider many other factors. Even so, be aware that Synchronoss Technologies is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

But note: Synchronoss Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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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.