Fundamental Analysis for Stock Investment Decision Making: A Study on PT Bank Mandiri (Persero) Tbk

Abstract

This study aims to analyze the fundamental condition of PT Bank Mandiri (Persero) Tbk (BMRI) as a basis for stock investment decision-making, using the indicators of Return on Equity (ROE), Debt to Equity Ratio (DER), Earning per Share (EPS), and Price Earning Ratio (PER) over the 2020–2024 period. A quantitative-descriptive approach was employed using secondary data sourced from Bank Mandiri's annual financial statements, publications of the Financial Services Authority (OJK), and stock trading data from the Indonesia Stock Exchange (IDX). The results show that Bank Mandiri's ROE increased consistently from 8.88% in 2020 to a peak of 21.11% in 2023, before slightly declining to 19.66% in 2024, reflecting continuously improving capital management efficiency in the post-pandemic period. DER remained relatively stable in the range of 7.15–7.68 times, which is reasonable given the banking industry's characteristic reliance on third-party funds. EPS rose sharply and consistently from Rp180 in 2020 to Rp598 in 2024, reflecting sustained net income growth. Conversely, PER showed a declining trend from 17.57 times in 2020 to 9.53 times in 2024, indicating that BMRI's stock valuation became increasingly undervalued amid improving fundamental performance. The combination of high ROE and EPS with a low PER in 2024 suggests that BMRI's stock is at an attractive point for long-term investors.