Risk factor
High price volatility
Profitability factor
Excellent dividends
About
PT Bank Mandiri (Persero) Tbk operates as a leading financial institution, delivering a comprehensive array of banking solutions to both individual and corporate clients. Its extensive operational footprint spans not only Indonesia but also key international markets such as Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. For its retail customers, the bank offers a diverse range of deposit products, including various savings, current, time, and demand accounts, which are also available in foreign currencies. Additionally, it provides numerous lending options tailored to personal needs, such as motorcycle, housing, and mortgage loans, alongside financing for purposes like education, home renovation, marriage, health, and other specific requirements. Corporate clients benefit from a robust selection of financing facilities, comprising working capital, investment, people's business, syndicated, and micro business loans. Beyond core banking, PT Bank Mandiri also engages in investment services, providing access to mutual funds, stock trading, and bond trading. Its portfolio further extends to insurance products, covering life, health, and general categories, in addition to offering various payment instruments like credit, debit, and corporate cards. The bank embraces digital innovation through its e-banking platforms and digital lending services. Specialized offerings include comprehensive cash management solutions, a full spectrum of trade finance services (encompassing value chain and supply chain management, global and domestic trade, export/import support, standby letters of credit, and bank guarantees), and spot and foreign exchange transactions. Custodial services are also provided, alongside treasury services focused on cash transaction/liquidity management, hedging strategies, and investment products. Furthermore, its trust services encompass roles such as trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank. Other key financial services include money transfer, remittance services, and venture capital financing. As of December 31, 2021, PT Bank Mandiri maintained a substantial physical presence, operating 2,609 branches in total. This network was composed of 137 main branch offices, 2,465 sub-branch offices, and 7 overseas branch offices. Complementing its branch network, the company also provided convenience through 13,087 ATM facilities. Established in 1998, the institution's primary headquarters are located in Jakarta, Indonesia.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, undervalued on P/RIBP. E
Target Price
The average target price of BMRI.JK is 5557 and suggests 31.7% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i