PTB Group is a specialist global aviation services business headquartered in Brisbane.

Specialist aviation services provider PTB provides a lower risk exposure to the growing market for global aviation. Aircraft engine maintenance is core to the business, which is something aircraft owners can’t delay or skimp on.

There are strict regulatory requirements for aircraft engine maintenance, as unlike a car the consequences of an engine failure could be dire and makes demand much more stable than for an airline.

The stock trades on a one year forward EV/EBITDA multiple around 6.4 times; a big discount to the average 13.5 times multiple of peers.

This is a fair price for a profitable Small Cap that pays dividends and has good growth prospects. If the dividend is held at 7 cents, the 8.7% yield alone is appealing.

There are risks, including exchange rate, credit and low share turnover, so keep positions small.