Mundo is quite strong as a champion BUT, the reason he is underplayed is that he does NOT synergize well with ANY of the strong keystones. From the moment Grasp was nerfed he fell in popularity massively(funny thing is, Riot considered Grasp to be stale for top lane trades, i guess it's a lot better now...sarcasm).
If Grasp was to be buffed again, sustain-wise at least, i'm certain he'd rise up there again. Some grevious-wounds do counter him but, he still scales quite hard into late game and becomes a decent duelist, splitpusher and teamfighter.
P.s: Rito wanted to add a grevious wounds effect in his E. Can you imagine the horror if had went trought with it?:D